CIL Eyes Digital Future with Data Centres in Old Mines

Coal India Limited (CIL) is exploring the idea of building data centres in its decommissioned mines to meet India’s rising need for digital infrastructure and promote sustainability. The company has started a detailed feasibility study, with consultants evaluating if turning old mines into data centres is practical. Four sites have been shortlisted—Umrer, Saraipali, Himgir Rampur, and Nigahi—for this concept. The study is far-reaching. It will rank possible locations, compare global data centre models like hyperscale, colocation, and edge facilities, and analyse what’s driving demand, such as digitisation, artificial intelligence, the rollout of 5G, and cloud usage. Site evaluations will also include demand forecasts, local and national trends, competitor analysis, customer needs, regulatory requirements, and key challenges like power supply, cooling systems, and reliable connectivity. CIL is focusing on how brownfield sites, particularly old mines, can be repurposed for new, high-value uses. This includes looking into renewable energy integration, possible expansion into smaller cities, and addressing unique difficulties such as geotechnical safety and environmental concerns. The final feasibility report should be ready by the third quarter of FY26. For shareholders, this move reflects CIL’s effort to diversify beyond coal and support national goals like Digital India and Make in India. By turning unused assets into sources of growth, CIL can tap into India’s thriving data centre market, which is expected to attract $20–25 billion in investments over the next 5–6 years. This strategy helps reduce asset waste and opens new revenue streams. While there are risks—like high costs, technical hurdles, and environmental issues—the potential benefits of asset optimisation, industry diversification, and market relevance provide a promising outlook for shareholder value.