India’s Digital Future Requires Sustainable Foundations
India ranks as the world’s second-largest consumer of data; however, its data center capacity constitutes less than 1% of the global total. The rapid adoption of technologies such as AI, IoT, cloud services, and streaming is driving an extraordinary demand for data infrastructure. This situation presents a unique opportunity to establish data centers that are not only scalable but also sustainable, with a core focus on energy efficiency, renewable energy integration, and operational resilience.
Initiatives pioneered in states rich in renewable energy are setting new sustainability standards, showcasing how infrastructure can be constructed to minimize environmental impact while maximizing economic value. However, achieving true sustainability entails rethinking the development approach for data centers, centering on the proximity of power sources and system integration.
The Power-Centric Reality of Metro Growth
Metropolitan areas such as Mumbai are at the forefront of data center capacity growth due to enhanced connectivity and investment. By 2025, it is anticipated that Mumbai will host over half of India’s data center capacity. Currently, these facilities consume nearly 20% of the city’s peak power demand, which hovers around 700 MW, with expectations of further increases that could strain an already overburdened electrical grid.
This issue extends beyond mere supply shortages. Large data centers require extensive backup diesel generator capacity, often equal to their operational load. Operating these generators in densely populated urban areas raises environmental concerns, including air pollution and noise, adversely impacting local communities. Additionally, the pursuit of on-site renewable energy and Battery Energy Storage Systems (BESS) to achieve carbon neutrality comes with significant challenges, including the space requirement of potentially hundreds of acres for a 100 MW facility—land that cities typically cannot provide.
Rethinking Sustainability Beyond Greenwashing
Sustainability should not rely solely on purchasing renewable energy certificates or sourcing power from distant renewable farms. Genuine decarbonization necessitates co-locating data centers with renewable energy sources and integrating them with local grid dynamics.
The concentrated demand from the industry places additional stress on power availability and urban land use, jeopardizing economic resilience and overall quality of life. To effectively decarbonize, data centers must be situated in close proximity to renewable energy sources. This strategy mitigates transmission losses and enhances the verification of clean energy utilization.
Embracing Distributed Growth Aligned to Renewables
Regions with strong renewable policies and ample nearby clean power, such as Tamil Nadu, Gujarat, and Karnataka, exemplify the advantages of distributed data center development. These areas benefit from robust renewable energy policies and larger land availability near solar and wind facilities, allowing data centers to obtain power directly from clean grids. This approach minimizes energy loss and enables transparent, verifiable sustainability claims.
Additionally, geographic diversification not only enhances energy resilience but also reduces reliance on long-distance fiber optic networks, strengthening overall digital infrastructure. This distributed model distributes load, mitigates risks, and encourages inclusion and economic growth outside metropolitan regions.
A Collective Industry Mandate
The data center industry must move away from outdated real estate-centric growth models. The availability and quality of power remain critical factors in enabling sustainable expansion.
As industry leaders, it is imperative to embed sustainability within every strategic decision, prioritizing the proximity to renewable energy sources and the transparency of energy usage over mere compliance. Properly executed, India’s data centers can establish global benchmarks, illustrating that rapid digital expansion and climate responsibility are essential components of progress.
With foresight and integrity, India’s data center industry can demonstrate that digital growth and climate responsibility not only coexist but can also be mutually reinforcing. Together, it is possible to create a digital future powered by clean energy and purposeful innovation.
The author is Ankit Saraiya, Director & CEO, Techno Digital.
Disclaimer: The views expressed are solely those of the author, and ETCIO does not necessarily endorse them. ETCIO will not be liable for any damage caused to any person or organization, directly or indirectly.
