India's Data Centre Power Demand to Hit 2% in Next Decade
NITI Aayog member Abhay Karandikar warns data centres could consume 2% of India's electricity in the next decade as digital infrastructure expands.
As India undergoes a massive digital transformation, the energy footprint of its digital infrastructure is set for a significant surge. According to Abhay Karandikar, a member of NITI Aayog, data centres could account for up to 2 per cent of India's total electricity consumption within the next ten years.
Currently, these massive computing hubs consume approximately 0.5 per cent of the nation's total power. However, as the country scales its digital capabilities to keep pace with global standards, this figure is expected to climb sharply.
Comparing India to Global Digital Giants
The projected rise highlights how much room there is for growth in India's digital ecosystem. Karandikar noted that in more digitally mature economies, such as the United States and various European nations, data centres already consume a much larger share of the grid, typically ranging between 2 and 5 per cent.
The expansion is being driven by the skyrocketing demand for Artificial Intelligence (AI), cloud computing, and a variety of other digital services that require constant, high-intensity power supply.
Addressing the Energy and Water Challenge
With increased power needs comes the challenge of resource management. Data centres are not just energy-intensive; they are also significant consumers of water, primarily used for cooling massive server arrays. This has raised concerns regarding the availability of both electricity and water as the sector grows.
To tackle these hurdles, the government is working on several fronts:
- Renewable Energy: Increasing the supply of power through green energy sources.
- Nuclear Power: Exploring the potential of nuclear energy to meet future requirements.
- Advanced Cooling: Leveraging new technologies to reduce water consumption in server cooling.
Karandikar emphasized that while the demand is rising, the country has a clear roadmap to meet these requirements. He also noted that advancements in cooling technology could present a massive opportunity for Indian tech companies to develop efficient, homegrown solutions.
The Shift Beyond Mumbai and Chennai
While the data centre industry in India is currently concentrated in major hubs like Mumbai, Chennai, and the Delhi-NCR region, the landscape is about to change. As various states compete to offer better land, electricity, and water provisions, the industry is expected to spread to other major cities.
Potential new hubs for data centre expansion include:
- Lucknow
- Bengaluru
- Hyderabad
- Pune
Looking Toward 6G and Satellite Connectivity
Beyond the immediate power concerns, the discussion also touched upon the future of connectivity. Karandikar shared insights into the preparations for sixth-generation (6G) telecommunications, noting that India has roughly four years to plan for the spectrum requirements expected by 2030.
Regarding the entry of foreign satellite communication firms into the Indian market, he maintained a balanced stance. He stated that while India aims to partner with global companies to expand broadband connectivity—especially in underserved regions—the government remains committed to protecting national interests and fostering indigenous technology.