India expands data centre capacity to 1,575 MW amid AI boom

India’s data centre capacity has expanded significantly, growing from 375 MW in 2020 to approximately 1,575 MW. This rapid growth is driven by the rise of artificial intelligence and high-performance computing, which are increasing demand for digital infrastructure and power.

To manage this expansion, the Bureau of Indian Standards (BIS) has introduced new voluntary frameworks for cloud computing, data centre performance, and ethical AI. These standards provide metrics for measuring efficiency, including Cooling Efficiency Ratio (CER), Water Usage Effectiveness (WUE), Power Usage Effectiveness (PUE), and Carbon Usage Effectiveness (CUE). These measures aim to help operators manage thermal loads from high-density computing, such as NVIDIA chips, while addressing energy and water consumption.

Projections from the Central Electricity Authority suggest that data centres could require roughly 17 GW of electricity by 2031-32. In response to rising power demands, the government is promoting clean energy through various initiatives, including the Green Energy Open Access Rules and the National Green Hydrogen Mission. Additionally, the SHANTI Act aims to strengthen access to reliable clean power for emerging sectors through potential deployments like small modular and micro nuclear reactors.