2 days ago
India’s Data Centre Boom Raises Power and Cyber Risks
India is building more places to store and process digital information.
Aon says the country’s data centre capacity could grow more than four times by 2030.
These centres need a lot of electricity, and delays in getting power can affect where they are built and when they open.
Some developers are considering batteries and other ways to supply power.
These choices can help, but they can also create new safety and maintenance risks.
AI makes computers use more electricity and produce more heat, so centres need more cooling.
Some areas may also have trouble supplying enough water.
Cyberattacks could disrupt the connected systems that help run the centres.
Aon says insurers are looking at risks throughout a data centre’s life, from design to operation.
Aon says India’s installed data centre capacity could grow more than fourfold by 2030, with substantial new capacity already being developed.
Power availability and grid connection delays are increasingly shaping where facilities can be built and when they can operate.
Developers are considering on-site generation, batteries and hybrid energy systems, which may improve resilience but add operational, maintenance and fire risks.
AI workloads increase electricity use, power density and cooling needs, while water scarcity makes site selection more complex in some regions.
Aon warns that cyber incidents involving connected systems or third-party vendors could damage assets and cause prolonged business interruptions.
- Who
- India’s data centre industry and developers; the report is by insurance broker Aon.
- What
- Aon reported expected rapid growth in data centre capacity alongside power, infrastructure, water and cyber risks.
- Where
- India; the cited power-demand projection concerns data centres globally.
- When
- The report was released on Tuesday and projects capacity growth by 2030.
- Why
- Demand for artificial intelligence, cloud computing and digital services is growing.
Potential benefits
Risks and constraints
Alternative energy systems
Potential benefits
On-site generation, battery storage and hybrid systems can help developers address grid constraints and improve resilience.
Risks and constraints
These systems can bring additional operational, maintenance and fire-related risks.
Industry expansion
Potential benefits
Growing demand for AI, cloud computing and digital services is driving data centre development in India.
Risks and constraints
Expansion faces power and infrastructure constraints, growing cooling and water needs, and cyber exposure.
Key facts
- Report publisher
- Aon
- India capacity outlook
- Installed data centre capacity could increase more than fourfold by 2030.
- Global power-demand projection
- Research cited by Aon indicates global data centre power demand could rise by 165 per cent by 2030.
- Insurance programme capacity
- Aon said capacity under its Data Center Lifecycle Insurance Program increased from $3.5 billion to $5 billion.
- Power-related pressures
- Power availability, grid constraints and connection delays affect facility development and operations.
- Physical risks
- AI-related power density and cooling requirements, as well as water availability, affect data centre risk and site selection.
- Cyber exposure
- Interconnected control systems, digital monitoring tools and third-party vendors can expose operations to disruptive cyber incidents.
Sources
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