India's Data Centre Boom: Balancing Growth and Sustainability

India's data centre industry is on the cusp of explosive growth, with projections indicating a 77% surge in capacity by 2027. This expansion is fueled by the proliferation of artificial intelligence, burgeoning internet usage, and the government's push for local data hosting. Global tech giants and domestic players alike are pouring billions into this burgeoning market, recognizing India's potential as a data powerhouse.

However, this digital renaissance comes with significant environmental implications. Data centres are notoriously water-intensive, primarily for cooling purposes, and India's water scarcity issues are well-documented. By 2030, the sector's water consumption is expected to more than double, potentially exacerbating existing water stress in urban clusters where most data centres are concentrated.

Moreover, the energy demands of these facilities pose challenges to India's decarbonization efforts. While many data centres are partnering with renewable energy providers, there's a growing call for mandatory clean energy use to ensure sustainable growth.

Balancing digital aspirations with environmental stewardship presents a complex policy challenge for India. Experts advocate for innovative solutions, such as utilizing treated wastewater for cooling and mandating zero-water cooling technologies. The imperative is clear: India must navigate this data centre boom judiciously to harness its economic potential without compromising its ecological integrity.