Key Points
- India’s data centre capacity quadrupled from 375 MW in 2020 to 1,500 MW by 2025
- Over 38,000 GPUs available to Indian startups at ₹65 per hour, one-third of global rates
- Electricity demand from data centres projected to reach 13.56 GW by 2031–32
India’s data centre capacity has grown fourfold in five years, rising from 375 megawatts in 2020 to approximately 1,500 megawatts by 2025, Union Minister of State for Electronics and Information Technology Jitin Prasada told the Rajya Sabha on Friday.
The expansion directly benefits Indian startups, researchers and academic institutions. Through the government’s AI compute capacity framework, over 38,000 graphics processing units, the specialised chips that power artificial intelligence workloads, are now available at a subsidised rate of ₹65 per hour. This is roughly one-third of what users pay globally for similar computing power.
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Fourteen empanelled service providers operate these data centres across six cities: Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar. The geographical spread ensures that AI researchers and technology companies across the country can access high-performance computing without depending on a single location.
Power demand set to surge as AI adoption grows
The Ministry of Power estimates that electricity demand from data centres will reach 13.56 gigawatts, equivalent to roughly 13,560 megawatts, by 2031–32. To put this in perspective, a single gigawatt can power approximately 7 lakh households.
Prasada stated that this projected demand is already factored into the government’s planning process. India’s national transmission infrastructure is being expanded continuously to meet growing electricity requirements.
Parliament recently passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, commonly called the SHANTI Act. The legislation aims to strengthen the nuclear energy sector and support the future deployment of small modular and micro nuclear reactors. These smaller reactors could provide dedicated, reliable power to data centres and AI facilities without straining the general electricity grid.
Water usage and cooling technology
Data centres consume significant amounts of water for cooling servers that generate substantial heat during operation. The exact requirement varies depending on the cooling technology each facility deploys.
Groundwater extraction for industrial purposes, including data centres, falls under guidelines issued by the Ministry of Jal Shakti through notifications in September 2020 and March 2023. These regulations govern how much groundwater industrial facilities can draw.
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The industry is increasingly adopting advanced cooling methods to reduce water consumption. Direct-to-chip liquid cooling circulates coolant directly over processor surfaces rather than cooling entire server rooms.
Adiabatic cooling uses the natural evaporation process to lower temperatures with less water than traditional systems. Immersion cooling submerges entire servers in non-conductive liquid, eliminating the need for air conditioning and significantly cutting water use.
Data centre growth and high-density computing
Minister said operators are also deploying high-density server racks that pack more computing power into smaller physical spaces. These configurations support demanding AI and high-performance computing workloads while reducing overall power and water consumption per unit of processing capacity.
The push for greater data centre capacity reflects India’s ambitions in artificial intelligence and digital services. Domestic infrastructure reduces dependence on foreign cloud providers and keeps sensitive data within Indian borders, addressing both cost and sovereignty concerns.
The government has not announced specific timelines for further capacity additions or indicated whether subsidised GPU access will expand beyond the current empanelled providers.
Your Questions, Answered
What is India’s current data centre capacity?
India’s data centre capacity reached approximately 1,500 megawatts by 2025, up from 375 megawatts in 2020, representing a fourfold increase in five years.
How can Indian startups access subsidised AI computing?
Startups, researchers and academic institutions can access over 38,000 GPUs through 14 government-empanelled service providers at ₹65 per hour, roughly one-third of global rates.
Where are India’s major data centres located?
Major data centres under the AI compute framework are located in Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar.
How much electricity will Indian data centres need by 2031–32?
The Ministry of Power estimates data centre electricity demand will reach 13.56 gigawatts by 2031–32, factored into national transmission infrastructure planning.
