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Huge water demand for data centres creates new challenges

“The future of computing will depend as much on energy and cooling as on algorithms.” - Fei-Fei Li, prominent Chinese-American computer scie...

“The future of computing will depend as much on energy and cooling as on algorithms.” - Fei-Fei Li, prominent Chinese-American computer scientist

India’s growing data centre surge

India is witnessing an unprecedented expansion in data centres as global giants such as Google, Amazon Web Services, Microsoft, Meta and major Indian conglomerates commit billions in new facilities. This boom is driven by cloud adoption, AI workloads, ecommerce growth and rising smartphone usage, with India’s IT spending expected to exceed 176 billion dollars in 2026.

Rising capacity and localisation push

Government policies on data localisation and the rapid growth of digital services have accelerated investments, with India’s data centre capacity projected to touch 1.3 gigawatts in the next few years. Companies like Yotta, NTT, AdaniConneX and ST Telemedia are leading large expansions, while hyperscalers plan massive AI-ready campuses across major cities.

The cooling challenge in a warming nation

Despite growth potential, India faces a sustainability hurdle. Why? Data centres consume enormous amounts of power and water, particularly for cooling systems. As AI workloads surge, cooling demand can account for up to 40 percent of total energy use. With India already water stressed and climate variability increasing, experts warn that unchecked expansion could worsen shortages.

Global examples and rising concerns

Ireland and Chile are already facing public opposition due to water use and power burdens from large data hubs. Analysts believe India must act early, encouraging more energy efficient designs, air-cooled systems and long term water management policies before the sector scales further.

The road ahead for sustainable growth

India’s opportunity remains vast, but its success depends on balancing digital expansion with environmental responsibility. With power demand for data centres expected to triple by 2030, policymakers and industry players must reimagine infrastructure to ensure long term resilience.

Summary

India’s data centre industry is expanding rapidly on the back of cloud computing and AI, but the sector faces major sustainability risks due to high energy and water use. Managing cooling demands will determine whether India can scale digital infrastructure without worsening resource stress.

Food for thought

Can India build a digital future without compromising its already fragile water security?

AI concept to learn: Hyperscale Infrastructure

Hyperscale infrastructure refers to massive computing facilities designed to handle enormous amounts of data, cloud services and AI workloads. These centres prioritise scalability, efficiency and automation. Understanding hyperscale design helps beginners grasp how modern digital services run at global scale.

AI water demand challenge


[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]

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