Study Of Data Center Water Consumption In India

Study Of Data Center Water Consumption In India Market Analysis

The Study Of Data Center Water Consumption In India Market size is estimated at 150.30 billion liters in 2025, and is expected to reach 358.66 billion liters by 2030, at a CAGR of greater than 19% during the forecast period (2025-2030).

• IT Load Capacity: The IT load capacity of India's colocation data center market is around 2,551.5 MW in 2024.
• Geographical Significance: India experiences a tropical monsoon climate characterized by sweltering summers and mild winters. These climatic conditions lead to heightened water consumption by data centers nationwide, subsequently fueling the demand for their expansion. Concurrently, several regions are grappling with water scarcity, emphasizing the need for efficient water resource management.
• Raised Floor Space: India's colocation data center raised floor space is about 9.15 million sq. ft in 2024.
• Projected Installed Racks: In 2024, India is set to have approximately 364,500 installed racks in its colocation data centers.

Study Of Data Center Water Consumption In India Market Trends

Colocation Segmentation to Witness Growth in the Forecast Period

• In 2024, India's Colocation IT Load capacity reaches approximately 2,551.5 MW, marking it as one of the highest in the APAC region to date.
• Key players in this market encompass a mix of global and local data center operators, including Equinix Inc, Microsoft Corporation, NTT DATA Inc, Sify Technologies, ST Telemedia Global Data Centers, and Yotta Infrastructure, among others.
• These players currently operate multiple facilities across the nation and are set to broaden their footprint by establishing more data centers. For example, Microsoft has recently acquired land in Pune to develop a new data center, thereby expanding its existing presence, which already includes two data centers.
• By the end of 2029, 5G subscriptions in India are projected to reach 840 million, constituting nearly 65% of all mobile subscriptions. As of the end of 2023, there were approximately 119 million 5G subscriptions. This surge underscores the growing demand for data centers, which are essential to manage the anticipated surge in data traffic and generation. Consequently, this uptick in data center activity is also expected to result in increased water consumption by these facilities.
• The Government of India had unveiled a draft 'National Data Centre Policy' in response to the growing significance of data centers. Major Indian states have rolled out their own data center policies, while others have inked MoUs with private entities for data center development. Consequently, India's installed data center capacity is projected to surge from 499 MW in 2021 to 1,008 MW by 2023. Yet, these policies overlook a critical concern: the environmental ramifications of data centers. Data centers impact the environment primarily through water usage. Operating round-the-clock, they rely on significant water volumes for cooling. This can adversely affect local watersheds, and issues can arise from cooling water disposal. However, as demonstrated by India's own journey, with the right political will—an effort many state governments are currently pursuing—it's feasible to mitigate water scarcity and promote sustainable water practices.

Mega Data Centers Gaining Popularity in India

• India is accelerating its data center developments, with numerous projects on the horizon during the forecast period. The country is seeing a rise in mega data centers due to their growing popularity. While metro cities like Chennai, Bangalore, Mumbai, and Delhi are saturated with facilities, operators are now focusing on Tier II and III cities for new constructions, leveraging abundant land and labor.
• Hyperscale colocation leaders like Microsoft Corporation have existing and upcoming data centers in states like Maharashtra and Telangana. These projects will increase the number of mega facilities, which will require millions of gallons of water annually. Operators are seeking ways to optimize water use and minimize wastage.
• India's AI trend is gaining momentum, impacting various industries. By 2030, 40-50% of India's data center capacity will be dedicated to AI and GPU workloads, with overall capacity increasing by more than four times to over 6 gigawatts (GW).
• Global cloud players such as Microsoft, Amazon Web Services (AWS), and Google are set to establish their own data centers, generating over 1 GW of capacity in the next five years.

Study Of Data Center Water Consumption In India Industry Overview

• Five major companies dominate the highly consolidated Indian water consumption data center market. Equinix Inc, Microsoft Corporation, NTT Ltd, Sify Technologies, and Nxtra by Airtel are at the forefront of this market.
• Equinix is actively pursuing water positivity through various initiatives, such as utilizing fuel cells to conserve billions of gallons of water, harnessing deep lake water cooling, implementing Aquifer Thermal Energy Storage (ATES) alongside free air cooling to cut down power consumption, and more.
• By 2030, Microsoft aims to achieve water positivity in all its direct operations. The tech giant is addressing water consumption through two primary strategies: first, by reducing water use intensity, which refers to the amount of water consumed per megawatt of energy utilized in its operations; and second, by replenishing water in regions where it operates that are stressed for water. In essence, by 2030, Microsoft commits to replenishing more water globally than it consumes.

Study Of Data Center Water Consumption In India Market Leaders

Study Of Data Center Water Consumption In India Market News

• April 2024: Many Indian cities, including Bengaluru, are grappling with severe water shortages, posing a substantial challenge to India's aspirations for data center expansion. Bengaluru, often dubbed the "Silicon Valley of the East," hosts more than 16 operational data center facilities. These facilities collectively consume over 26 million liters of water each year, even as the city faces a pressing water crisis. To address this issue, many companies now use recycled wastewater for cooling and are developing innovative conservation methods.
• July 2024: Following the IndiaAI mission, which has attracted over a billion dollars in investments, India is experiencing a surge in AI technology. Data center developments are now shifting from metro cities to Tier II and Tier III cities, increasing the demand for cooling solutions. As data centers expand, establishing institutional safeguards to mitigate risks is crucial. For existing data centers, setting metrics for water and energy consumption is essential to assess their impact on natural resources. Reliable measurement standards will enable operators to monitor and manage water usage effectively, facilitating informed decision-making and resource allocation.