The Maharashtra Electricity Regulatory Commission has approved the development of a 400/220 kilovolt Gas Insulated Switchgear substation at Ambernath under a dedicated infrastructure framework to support a proposed green data centre park being developed by Lodha Developers, paving the way for timely power connectivity to nearly 3 gigawatts of upcoming data centre load in the Mumbai Metropolitan Region. In its latest order, the Commission allowed Maharashtra State Transmission Utility and Maharashtra State Electricity Transmission Company Ltd to execute the Ambernath project through a Dedicated Distribution Facility mechanism, with Lodha Developers funding the entire capital expenditure and reimbursing operation and maintenance costs over the life of the asset. The decision sets a precedent for power infrastructure planning tied to large-scale digital infrastructure investments.
The regulator said the arrangement would ensure that neither the capital cost nor recurring operation and maintenance expenses of infrastructure dedicated to data centre consumers are passed on to the general body of transmission users through tariffs. The project gained urgency after a tariff-based competitive bidding process was annulled in April 2026 when the discovered tariff was found to be abnormally low and commercially unviable. STU argued that any further delay could jeopardise the timely availability of transmission infrastructure required for large-scale data centre investments expected to commence operations by 2028. According to submissions before the Commission, STU has already granted grid connectivity for around 1,450 megawatts of load in the Ambernath region, while an additional 1,500 megawatts is under consideration, taking the total projected load to nearly 2,950 megawatts by 2028. The DDF model protects retail consumers while fast-tracking data centre development in Maharashtra.
Lodha Developers informed the Commission that it has signed memoranda of understanding with the Maharashtra government involving investments of about Rs 1.3 lakh crore for the development of a Green Integrated Data Centre Park at Palava. The project is expected to attract global technology and data centre operators including Amazon Web Services and ST Telemedia Global Data Centres. MERC held that the proposed Ambernath substation qualifies as a Dedicated Distribution Facility under the state’s Supply Code Regulations as it is intended exclusively to serve consumers within the data centre park. The Commission ruled that no separate regulatory approval is required for execution under the DDF framework since the entire project cost will be borne by the developer and not recovered through MSETCL’s aggregate revenue requirement. This aligns with national policy trends on captive infrastructure for high-density digital loads.
The Commission directed STU and MSETCL to proceed with Option 1, under which Lodha Developers will construct the infrastructure under MSETCL’s technical supervision and subsequently transfer the assets to the state transmission utility free of cost for operation and maintenance. MERC said the project is of strategic importance for Maharashtra’s ambitions to emerge as a major data centre destination and stressed that transmission infrastructure must be developed on priority to meet the targeted commissioning timelines of 2028. The Ambernath GIS substation will serve as the primary grid interface for the Palava park, reducing dependence on existing urban networks and improving reliability for hyperscale operators. The approach reflects evolving models for utility infrastructure delivery where private capital de-risks public grid expansion.
The regulatory clarity addresses a key bottleneck for data centre siting in India: assured, high-capacity power with minimal tariff risk to other consumers. By ring-fencing capital and O&M costs, the DDF framework enables states to compete for digital investment without distorting cross-subsidy structures. The 3 GW projected load at Ambernath represents one of the largest single-location commitments in the Mumbai Metropolitan Region, comparable to multi-phase builds in Navi Mumbai and Chennai. Gas Insulated Switchgear technology was selected for its compact footprint and resilience, critical for land-constrained urban edges and for meeting uptime requirements of Tier III and Tier IV facilities. The timeline aligns with operator roadmaps that require 220 kV and 400 kV connectivity for 100+ MW campuses. Details on the regulatory order are available via MERC.
For architects and masterplanners, the Ambernath approval underscores how energy infrastructure now drives site selection for data parks, influencing zoning, cooling strategies, and phasing. The Palava Green Integrated Data Centre Park will need coordinated planning across power, water, fibre, and logistics, with the GIS substation anchoring the utilities spine. The developer-funded DDF model may be replicated in other states seeking to localize hyperscale demand while protecting discom finances. As India’s data localization and artificial intelligence workloads grow, transmission-ready land banks with pre-approved substations will become a new asset class. The order also signals that failed TBCB outcomes need not delay critical projects if alternative, consumer-neutral mechanisms exist. The ruling supports Maharashtra’s positioning in smart infrastructure and digital economy clusters through 2030.
