India Unveils 20-Year Tax Break to Woo Global Data Centers

India will offer a two-decade tax holiday to overseas firms that provide global data center services from the country, stepping up efforts to woo investors in its fast-growing digital infrastructure sector.

Foreign companies operating data centers in India will be exempt from taxes on overseas services through 2047, Finance Minister Nirmala Sitharaman announced in the federal budget Sunday. The break applies only to services delivered out of the South Asian country. Sales to Indian users through a local unit will be taxed, she said.