India plans grid upgrades to meet soaring data centre power demand

India’s Power Ministry is reviewing power‑generation and transmission capacity to accommodate the rapid expansion of data centres. Internal estimates project data‑centre electricity needs of about 26 GW by 2032 and 35.7 GW by 2040, as the sector’s addressable market could reach $90 billion by FY 35. The ministry is coordinating with state utilities, transmission companies and the Central Electricity Authority on grid reinforcement and new infrastructure.

Industry analyst Neil Shah warns that the country lacks the water and power resources for a 30‑fold surge in data‑centre consumption. National electricity use by data centres rose from 375 MW in 2020 to an anticipated 1,500 MW by 2025, with a projected 13.6 GW by 2032. He said, “the amount of infrastructure required … will be unprecedented,” and called for dedicated grids, renewable‑energy integration, and water‑recycling measures similar to Reliance Jio’s Jamnagar facility.