A state-owned Indian coal mining firm is considering building data centers in its decommissioned mines.

According to a report from the Times of India, Coal India Limited (CIL) is exploring the possibility of repurposing its redundant mines for use as data centers.

The state-owned mining company initiated a feasibility study with the assistance of consultants. The studies will include site assessments, a comparative analysis of shortlisted locations, and a feasibility report to determine the most viable locations.

In addition, the studies will map demand forecasts, customer and regional trends, regulatory concerns, and potential deployment barriers, including power, cooling, and connectivity.

“The scope of work involves a detailed analysis of India’s detailed analysis of India’s data center 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 told the Times.

CIL operates hundreds of coal mines across India, through four subsidiaries: South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL), Eastern Coalfields Limited (ECL), and Bharat Coking Coal Limited (BCCL).

Four sites have reportedly been shortlisted for evaluation so far, spanning across the state-owned miners' subsidiaries. They include Umrer, Saraipali in Korba, Himgir Rampur near Jharsuguda, and Nigahi.

The company also stated that it would explore the possibility of integrating renewable energy sources on the sites.

India is heavily reliant on coal for power generation, accounting for approximately 60 percent of its electricity demand. While coal use has fallen over recent years, the Indian government has not specified a date for when it expects to completely phase out its usage. In 2023, the government requested that utilities delay the retirement of coal-fired power plants until the 2030s.

The country has subsequently increased its levels of coal production to meet demand, with an all-time high of 997 million tons recorded in 2023-24.

The potential use of coal to power data centers has gained popularity over the past year, as data centers scramble for available power. In July, reports surfaced that the largest coal-fired power plant in North Dakota could be set to power a data center.

US utilities have also begun to extend the life of their coal assets due to growing electricity demand from data centers. In February, it was reported that Southern Company was seeking to extend the life of three coal-fired plants in Mississippi and Georgia, which have a combined capacity of 8.2GW.