Data centre capacity in the country has increased from about 375 MW in 2020 to around 1500 MW by 2025

**Executive Summary** The Indian data centre industry is projected to expand from 375 MW in 2020 to 1500 MW by 2025, with a significant increase in AI-related computing capacity. The government is addressing the associated electricity and water demands through infrastructure expansion and advanced cooling technologies. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act aims to support reliable power solutions for the sector. **Key Points / Main Content** * **Data Centre Capacity Growth:** * Total data centre capacity in India is expected to grow from approximately 375 MW in 2020 to around 1500 MW by 2025. * **AI Compute Capacity:** * Approximately 38,231 GPUs have been deployed to support AI development through 14 empanelled service providers under the AI compute capacity framework. * These services are offered to startups, researchers, and academia at a subsidised rate of ₹65 per hour. * Data centres are located in Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida, and Jamnagar. * **Infrastructure and Demand:** * The government acknowledges the electricity and water infrastructure needs of the data centre ecosystem. * Electricity demand from AI and large-scale data centres is projected to reach 13.56 GW by 2031-32. * India's national transmission infrastructure is being expanded to ensure reliable power supply. * **Nuclear Energy Support:** * The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act has been passed to support reliable power solutions for emerging sectors like AI and data centres, including the deployment of small modular and micro nuclear reactors. * **Water Usage and Cooling Technologies:** * Data centre water requirements are dependent on cooling technologies. * Groundwater extraction is regulated by Ministry of Jal Shakti guidelines (S.O. 3289(E) dated 24.09.2020, amended 29.03.2023). * The industry is adopting advanced cooling technologies, including direct-to-chip liquid cooling, adiabatic cooling, and immersion cooling, to minimise water usage. * High-density racks are being deployed to support high-performance computing and AI workloads, reducing power and water consumption. * **Submission Information:** * This information was submitted by the Union Minister of State for Electronics and Information Technology, Shri Jitin Prasada, in Rajya Sabha on 13.03.2026. **Impact Analysis** * **Data Centre Operators** * **Impact:** Increased demand for data centre capacity necessitates expansion and investment in infrastructure, including advanced cooling systems to manage water usage. They will benefit from government support for power solutions. * **Action Required:** Continue adopting advanced cooling technologies and high-density rack deployments to manage power and water consumption. * **AI Developers and Users (Startups, Researchers, Academia)** * **Impact:** Access to AI compute capacity at subsidised rates facilitates research, development, and innovation. * **Action Required:** Continue to leverage the available AI compute capacity framework. * **Government and Policy Makers** * **Impact:** Need to ensure adequate electricity and water infrastructure to support the growing data centre sector. The SHANTI Act provides a framework for supporting future power needs. * **Action Required:** Continue planning and expanding national transmission infrastructure and monitor the implementation of the SHANTI Act. Ensure compliance with groundwater extraction regulations. * **Power Utilities** * **Impact:** Expected significant increase in electricity demand from data centres requires planning and grid reinforcement. * **Action Required:** Continue expanding and strengthening the national transmission infrastructure to meet growing electricity demand.

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