India speeds up data center building as water and power concerns grow

In short: India is rapidly building more data centers to support cloud services and AI, and critics say the projects could strain water and power supplies while creating few permanent jobs.

What's going on

A data center is a large building full of computers that store data and run online services. You can think of it like a giant warehouse for the internet, with rows of machines that need constant electricity and cooling.

India is accelerating the construction of these facilities as demand rises for cloud computing and AI systems. Supporters say the country needs more of this digital infrastructure so businesses and government services can run faster and handle more data.

Critics and environmental groups are focusing on water use and energy use. BBC reporting cited projections that India’s data center water consumption could rise from about 150 billion litres in 2025 to 358 billion litres by 2030. Reuters, citing U.N. researchers, reported that data centers worldwide used about 4.5 trillion litres of water in the prior year and that both electricity and water use could double by 2030 as AI demand grows.

Some Indian reporting has also highlighted local estimates. One Karnataka minister said each 1 MW of data center capacity (a measure of size, like how much power the site can run) may require 25 million litres of water per year. Analysts warn that many centers are being built in areas that already have water stress, which can increase conflict over limited local resources.

What to watch

A key question is whether India sets clearer, nationwide rules for environmental performance, since some reporting says there is no uniform national policy yet. Another is how states and companies respond to concerns about long-term jobs, since most employment is during construction and far fewer roles remain once a center opens.

Source: NYTimes