Archive · 5 Oct 2026
India’s Data-Centre Boom Faces Questions Over Value and Resources
India is building many places to store and process computer information.
Some new facilities will power artificial intelligence, which can need more electricity and cooling than older computer systems.
India already has nearly 1.8GW of data-centre capacity, and more is being developed.
People have raised concerns about how these projects may affect water, land and the environment.
An Acronis executive says the important question is whether the facilities create enough value for the resources they use.
He also warns that building too much too quickly could leave capacity unused if demand grows more slowly than expected.
Building in stages and using resources efficiently could help reduce that risk.
The article says India must balance digital growth with resource limits and stronger environmental oversight.
India has nearly 1.8GW of operational data-centre capacity, with another 3.86GW in development.
AI facilities require heavier, higher-density computing infrastructure, more electricity and advanced cooling.
Activists have raised concerns about water scarcity, ecological impacts, land acquisition and environmental clearances in Visakhapatnam and Telangana.
Acronis executive Rajesh Chhabra says investment should be judged by economic value generated per unit of infrastructure, not resource use alone.
The article highlights phased construction, efficient cooling, renewable energy and stronger environmental oversight as ways to manage risks.
- Who
- India’s data-centre industry, project operators, activists and Acronis executive Rajesh Chhabra.
- What
- The article examines whether data-centre expansion, particularly for AI, will deliver enough value to justify its resource use and investment.
- When
- As AI reshapes data-centre investment and infrastructure planning.
- Where
- India, including projects in Visakhapatnam and Telangana.
- Why
- Growing demand for computing is driving investment, while concerns persist about electricity, water, land, environmental impacts and the risk of underused capacity.
Environmental and investment concerns
Industry growth and infrastructure value
Resource use and oversight
Environmental and investment concerns
Activists and campaigners cite concerns about water scarcity, ecological impacts, land acquisition and environmental clearances, and call for stronger sustainability requirements and reporting.
Industry growth and infrastructure value
Chhabra argues that data-centre capacity should be assessed by the economic value it generates per unit of infrastructure, alongside better utilisation, renewable energy and efficient, water-conscious design.
How quickly to build
Environmental and investment concerns
The article warns that aggressive assumptions about future AI demand could leave facilities underused and resources committed without expected returns.
Industry growth and infrastructure value
India has substantial computing demand from cloud services, digital services, financial technology, global capability centres and AI; flexible, phased construction could support that demand while adapting as it develops.
- Operational capacity
- Nearly 1.8GW
- Capacity in development
- 3.86GW
- Traditional floor-loading range
- Roughly 12–15 kilonewtons per square metre
- Higher-density AI floor-loading
- Around 25 kilonewtons per square metre and beyond
- Expert quoted
- Rajesh Chhabra, General Manager, India and Asia at Acronis
- Sites named amid concerns
- Visakhapatnam and Telangana