India’s data centres may consume up to 2% of electricity in a decade, says NITI Aayog member

India’s data centres currently use about 0.5% of the country’s total electricity consumption. NITI Aayog Member Abhay Karandikar said this share could reach 1% to 2% over the coming decade. The increase matters because data centres support the digital infrastructure behind online services and AI applications.

The main driver is expansion. More data centres mean more servers operating continuously, along with cooling and other supporting equipment. Karandikar compared India’s projected share with the United States and Europe, where data centres consume roughly 2% to 5% of total electricity.

India’s electricity demand will rise as digital infrastructure grows, but the government says it has a roadmap to meet the additional need. Planned responses include increasing renewable energy supplies and potentially using nuclear power in coming years.

A data centre is a facility built to house computing equipment and the infrastructure needed to run digital services. It contains servers that process and store information, plus network systems that connect services to users. These facilities matter because websites, apps and other online tools depend on reliable computing capacity.

Electricity powers the servers and the wider infrastructure supporting them. Servers operate continuously, so their demand does not stop when people sleep. The equipment also produces heat, making cooling essential. The article notes that water is primarily used to cool servers, while electricity is needed for the operating and cooling systems.

As India’s digital infrastructure expands, more data-centre capacity will be required. The resulting electricity and water needs are why the new evaluation framework assesses both resources when examining data-centre proposals.

Expanding data centres will increase India’s demand for both electricity and water. Electricity powers servers and the infrastructure supporting digital services. Water is primarily used to cool servers, so new facilities must secure both resources rather than electricity alone.

The article gives a clear scale for the electricity impact. Data centres use about 0.5% of India’s total electricity today, but that could rise to 1% to 2% during the coming decade. The new Data Centre Set-Up Evaluation Framework Report includes a method for assessing proposed facilities’ electricity and water requirements.

This resource pressure could influence where future centres are built. States will need to make land, electricity and water available. More efficient cooling technologies could reduce water consumption, while renewable energy and potentially nuclear power could help supply the additional electricity.

Artificial intelligence and other digital services are increasing demand for data-centre capacity because they require expanding digital infrastructure. As more services are delivered through connected computing systems, additional facilities and equipment are needed to support them. The article links this growth directly to rising resource requirements.

The mechanism is straightforward: expanding data centres adds servers and supporting infrastructure. Those systems consume electricity, while water is primarily used to cool servers. Demand therefore grows not only for computing space, but also for dependable power and cooling resources.

India is responding by assessing the infrastructure needs of proposed facilities. The Data Centre Set-Up Evaluation Framework Report provides principles and a methodology for evaluating electricity and water requirements. As AI and other digital services grow, this planning will help guide capacity expansion and resource availability.

Mumbai, Chennai and the Delhi-NCR region are currently the main locations for India’s major data centres. The article identifies these locations as existing concentration points, but it does not give a single reason for their dominance. Their role reflects the country’s present data-centre development pattern.

Future locations will depend on whether states can provide essential resources. Karandikar said expansion could reach Lucknow, Bengaluru, Hyderabad and Pune as states make land, electricity and water available. These resources enable facilities to be built, powered and cooled.

Availability will therefore shape the geography of India’s digital infrastructure. A city may attract new facilities when suitable land and dependable power and water supplies can be secured. The evaluation framework’s focus on electricity and water requirements gives policymakers a way to assess these needs as proposals move forward.

India can support expanding data centres by increasing energy supply from renewable sources and potentially nuclear power. These options address the expected rise in electricity demand as more servers and digital infrastructure are added. Karandikar said the government has a roadmap to meet that additional requirement.

Cooling offers another solution. Servers generate heat, and water is primarily used to cool them. Advances in cooling technology could make facilities more efficient, reducing the water needed to maintain operating conditions. The article says this could also create opportunities for Indian technology companies developing efficient cooling systems.

Together, cleaner or additional power and improved cooling can ease resource pressures. They will matter as data-centre electricity use potentially reaches 1% to 2% of national demand over the coming decade. The evaluation framework is designed to consider these electricity and water requirements.

Data centres turn electricity into useful digital services by powering servers and the infrastructure around them. Servers process requests and handle information, while network connections carry data between the facility and users. Together, these systems provide the computing foundation for websites, apps and AI services.

For example, when someone uses an online service, connected servers can process the request and return information through the network. AI services also depend on computing capacity in data centres. The article connects rising demand for AI and digital services with India’s need to expand its digital infrastructure.

This system requires constant resources. Electricity runs the servers and supporting equipment, while cooling manages the heat produced during operation. India’s new evaluation framework assesses these electricity and water needs as data-centre capacity grows across existing and potential new locations.