India’s rapidly expanding data center sector faces critical challenges related to water consumption and energy use. This growth is largely driven by increasing demand for digital services and artificial intelligence.
Projected Growth of Data Centers in India
India’s data center capacity is expected to increase by 77% by 2027, reaching an impressive 1.8GW. Investments exceeding $25 billion are anticipated by 2030, driven by major players such as Google, Meta, and Amazon Web Services.
- Google has committed $15 billion to establish a data center in Andhra Pradesh.
- India ranks third in the world for data generation, capturing 20% of the global data produced.
The Water Challenge
Despite its economic potential, the data center boom presents significant challenges, particularly in water management. India has only 4% of the world’s water resources while housing 18% of its population. This places immense pressure on local water supplies, especially in urban areas like Mumbai, Hyderabad, Chennai, and Bengaluru.
- Data center water consumption is projected to double from 150 billion liters in 2025 to 358 billion liters by 2030.
- Many regions are already experiencing acute water stress, heightening the risk of operational disruptions for these facilities.
Public Concerns and Regulatory Gaps
Local advocacy groups have raised alarms about the potential diversion of public water resources for data center cooling. For instance, the proposed Google facility in Visakhapatnam has stirred concerns about increasing water scarcity. Experts emphasize that current policies inadequately address water use in data center operations.
Policy Recommendations
- Implement regulations requiring data centers to utilize treated wastewater for cooling.
- Encourage the use of zero-water cooling technologies that are emerging globally.
- Focus on developing data centers in water-abundant regions to minimize stress on local resources.
Energy Consumption Issues
Alongside water concerns, energy consumption is a growing issue. India’s data centers are projected to double their electricity usage from 0.5-1% of national power demand to 1-2% by 2030. This increase could lead to higher reliance on fossil fuels unless regulations are established to mandate renewable energy use.
Balancing Growth and Sustainability
India must navigate the complexities of expanding its digital infrastructure while or avoiding environmental degradation. As the sector grows, policymakers need to ensure that economic benefits do not come at the expense of critical resources like water and energy.
In summary, India’s ambitious data center expansion opens new economic avenues yet poses serious sustainability challenges. Addressing these issues proactively will be essential to realizing a balance between digital growth and resource conservation.
