Data infrastructure growth in India raises environmental concerns
Rapid growth of AI and data centres is putting pressure on water and energy resources, with India’s urban clusters like Mumbai and Bengaluru facing rising environmental challenges.
India’s data centre market is expanding rapidly, driven by rapid AI adoption, mobile internet growth, and massive foreign investment from firms such as Google, Amazon and Meta. The sector is projected to expand 77% by 2027, with billions more expected to be spent on capacity by 2030.
Rapid expansion of energy-hungry and water-intensive facilities is creating serious sustainability challenges, particularly in water-scarce urban clusters like Mumbai, Hyderabad and Bengaluru. Experts warn that by 2030, India’s data centre water consumption could reach 358 billion litres, risking shortages for local communities and critical services in India.
Authorities and industry players are exploring solutions including treated wastewater, low-stress basin selection, and zero-water cooling technologies to mitigate environmental impact. Officials also highlight the need to mandate renewable energy use to balance India’s digital ambitions with decarbonisation goals.
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