India’s data center industry is experiencing steady growth, with total capacity rising from about 375MW in 2020 to approximately 1,500MW by 2025. To support artificial intelligence (AI) development, 38,231 GPUs have been onboarded through 14 empanelled service providers and data centers under the national AI compute capacity framework. These resources are being offered to startups, researchers, academic institutions, and other eligible users at a subsidised average rate of ?65 per hour—around one-third of the global average cost.

The data centers are distributed across key locations including Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida, and Jamnagar.

The government has acknowledged the infrastructure requirements of the expanding data center ecosystem, particularly in terms of electricity and water. According to the Ministry of Power, electricity demand from data centers is projected to reach 13.56 GW by 2031–32. This demand is being incorporated into national planning, with transmission infrastructure continuously expanding to ensure reliable power supply.

To strengthen long-term energy security, Parliament recently passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act. The legislation is aimed at supporting future deployment of small modular and micro nuclear reactors to provide reliable power for emerging sectors such as AI and data centers.

Water usage in data centers varies depending on cooling technologies. Groundwater extraction for industrial use is regulated under guidelines issued by the Ministry of Jal Shakti, including notifications released in September 2020 and March 2023.

To reduce water consumption, the industry is adopting advanced cooling methods such as direct-to-chip liquid cooling, adiabatic cooling, and immersion cooling. Operators are also deploying high-density racks to efficiently support high-performance computing and AI workloads while lowering overall power and water usage.

By: DocMemory
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