Coal India Limited (CIL) is exploring the possibility of setting up data centres in its decommissioned mines, repurposing redundant assets to meet India’s rising demand for digital infrastructure while pushing sustainable development.

The state-owned miner has initiated a detailed feasibility study with consultants, officials told PTI. The exercise will include site assessments, a comparative analysis of shortlisted locations, and preparation of a Preliminary Feasibility Report (PFR) for the most viable site, PTI reported.

Four sites across CIL subsidiaries — Umrer (WCL), Saraipali in Korba (SECL), Himgir Rampur near Jharsuguda (MCL), and Nigahi (NCL) — have been identified for evaluation.

“The scope of work involves a detailed analysis of India’s data centre industry and global benchmarks, examining models such as hyperscale, colocation and edge facilities, alongside key demand drivers including AI, IoT, 5G rollout and cloud adoption,” a source said.

The study will also map demand forecasts, regional trends, customer segments, regulatory issues, and potential entry barriers such as power supply, cooling, and connectivity. In addition, it will evaluate the prospects of integrating renewable energy, repurposing brownfield mine sites, and expanding into Tier-2 and Tier-3 cities.

CIL said the initiative is aligned with Digital India and Make in India missions while unlocking value from redundant coal assets. The final report is expected in the third quarter of FY26.

The company is simultaneously pursuing other repurposing strategies, including turning closed coal mines into eco-parks, mine tourism hubs, and recreation centres.

According to industry estimates, India’s data centre sector is likely to attract $20–25 billion in new investments over the next five to six years.