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India's Data Centre Capacity Soars 4x to 1,500 MW, Fueling AI Boom

India's data centre capacity has quadrupled since 2020, reaching nearly 1,500 MW. The government has facilitated access to over 38,000 GPUs for AI development at a subsidised rate. Electricity demand from the sector is projected to grow significantly, requiring infrastructure expansion. The industry is also adopting advanced cooling technologies to manage water consumption as it scales.

Key Points: India's Data Centre Capacity Hits 1,500 MW, AI Compute Grows

  • Capacity surged from 375 MW to 1,500 MW
  • 38,231 GPUs onboarded for AI compute
  • Power demand projected at 13.56 GW by 2031-32
  • Industry adopting advanced water-saving cooling tech
2 min read

India's data centre capacity jumps 4-fold since 2020 to 1,500 MW: Minister

India's data centre capacity jumps from 375 MW to 1,500 MW. Govt provides 38,000+ GPUs for AI at subsidised rates, with power demand projected to hit 13.56 GW.

"These computing resources are being provided... at a subsidised average rate of Rs 65 per hour, which is roughly one-third of the global average cost - Jitin Prasada"

New Delhi, March 13

India's data centre industry is witnessing steady growth, with the country's total capacity rising from around 375 MW in 2020 to nearly 1,500 MW by 2025, the Parliament was informed on Friday.

In a written response to a question in Rajya Sabha, Union Minister Jitin Prasada said that to support artificial intelligence (AI) development, about 38,231 GPUs have been onboarded through 14 empanelled service providers and data centres under the AI compute capacity framework.

These computing resources are being provided to startups, researchers, academic institutions and other eligible users at a subsidised average rate of Rs 65 per hour, which is roughly one-third of the global average cost, he added.

The data centres are located across key technology hubs in the country, including Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar.

The minister said the government is aware of the infrastructure requirements of the growing data centre ecosystem, including electricity and water.

According to the Ministry of Power, electricity demand from data centres is projected to reach 13.56 GW by 2031-32 as the sector expands alongside AI and other large-scale computing applications.

India's national transmission infrastructure is being continuously expanded to meet rising electricity demand and ensure reliable power supply across regions, he added.

The recently enacted Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act is also expected to support reliable power solutions for emerging sectors such as AI and data centres by enabling future deployment of small modular and micro nuclear reactors.

Prasada noted that water consumption in data centres varies depending on the cooling technologies used.

Groundwater extraction for industrial use, including for data centres, is regulated under guidelines issued by the Ministry of Jal Shakti, according to him.

To minimise water usage, the industry is increasingly adopting advanced cooling technologies such as direct-to-chip liquid cooling, adiabatic cooling and immersion cooling.

Companies are also deploying high-density racks to efficiently support high-performance computing and AI workloads while reducing overall power and water consumption, the minister said.

- IANS

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Reader Comments

P
Priya S
Great progress, but the projected electricity demand of 13.56 GW by 2032 is massive. I hope the expansion of transmission infrastructure keeps pace. We need to ensure this growth is sustainable and doesn't lead to power shortages for regular citizens.
V
Vikram M
The mention of the SHANTI Act for nuclear energy is interesting. If we can power data centres with reliable nuclear energy, it could be a clean solution. But we must have strict safety protocols. Water conservation measures with advanced cooling tech are also a must in our climate.
R
Rohit P
Seeing Jamnagar on the list alongside Mumbai and Bengaluru is surprising but good! Spreading data centres beyond the usual metros can help with regional development and disaster recovery. Hope more tier-2 cities get included in the next phase.
S
Sarah B
As someone working in tech, the subsidised compute rate of ₹65/hour is a huge relief. It was so expensive to access quality GPUs before. This will level the playing field for Indian innovators. Hope the application process is smooth and transparent.
M
Meera T
While the growth is impressive, I have a respectful criticism. The article mentions water usage regulation, but enforcement is key. In many states, groundwater is already over-exploited. We need strong, independent monitoring to ensure data centres don't worsen water stress for local communities.
D

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