Coal India looks to set up data centres in decommissioned mines; check details

The study will cover site assessments, preparation of a comparison matrix for evaluating identified locations, and a Preliminary Feasibility Report (PFR) for the most suitable site. Four sites across CIL subsidiaries—Umrer (WCL), Saraipali in Korba (SECL), Himgir Rampur near Jharsuguda (MCL), and Nigahi (NCL)—have been shortlisted.

"The scope of work involved a detailed analysis of the data centre industry in India and globally, classification of models such as hyperscale, colocation and edge facilities, and key demand drivers including digitisation, artificial intelligence, IoT, 5G rollout and cloud adoption," people said.

It will also assess demand forecasts, sectoral and regional trends, the competitive landscape, customer segments, the policy environment, regulatory compliance, and entry barriers such as power, cooling, and connectivity.

The study will also map opportunities for repurposing brownfield sites like mines, integrating renewable energy use, and expanding into Tier-2 and Tier-3 cities. At the same time, it will evaluate challenges unique to mine-based data centres, including geotechnical constraints, connectivity gaps, environmental issues, operational safety and cost uncertainties.

CIL noted that the initiative aims to align its diversification with India’s Digital India and Make in India missions while optimally utilising redundant mining assets for high-value infrastructure creation. The final report is expected within the third quarter of FY26.

The state-owned miner was adopting multiple repurposing strategies, including closed coal mines repurposed into eco-parks, mine tourism sites and recreation centres.

According to a study, India’s data centre industry is expected to attract $20–25 billion in fresh investments in the next five to six years.

Provisional data from the government on Monday showed that India’s coal production dropped marginally by 0.6% to 381.75 million tonnes (mt) in the April-August period of the current fiscal year. The domestic coal output was 384.037 mt in the year-ago period.

Of the total output of 381.75 MT, Coal India produced 280.15 MT, followed by Singareni Collieries Company Ltd (SCCL) with 24.19 MT and captives and others with 77.41 MT.

Coal India accounts for over 80% of domestic coal production.

However, the country's domestic coal output in August grew by 11.5% to 69.87 mt, from over 62.63 MT in the corresponding month of the previous fiscal year.

On Monday, shares of Coal India settled at ₹387.35 apiece on the National Stock Exchange, falling 1.35%.

The stock has gained 2% in the last five trading sessions. It has surged 3.25% in the last six months. However, over a year, Coal India stocks have tumbled 20%.

CIL has a total market capitalisation of ₹2.38 lakh crore on the NSE.