Archive · 5 Oct 2026
India’s Data Center Boom Raises Major Electricity Demand Concerns
India is building many more data centers to support cloud services and artificial intelligence.
These facilities need a lot of electricity to run computers and keep them operating reliably.
India’s data center capacity has grown quickly, and one forecast says it could reach 12 gigawatts by 2030.
Another projection says data centers could use 191 terawatt-hours of electricity each year by 2040.
That would be about 7% of India’s expected electricity demand.
Government estimates of future demand differ, with one putting data center demand at 13.56 gigawatts and a later estimate saying AI centers could add 26.3 gigawatts.
The government says it is planning transmission upgrades and expects renewable energy to supply most of the extra AI-related load.
The challenge is making sure electricity can reach the centers reliably as demand grows.
India’s data center capacity grew more than fourfold from 2020 to reach about 1,575 MW in 2025.
Wood Mackenzie projects operational capacity could rise from 2.2 GW in 2025 to 12 GW by 2030.
A government estimate puts data center electricity demand at 13.56 GW by 2031–32; a later parliamentary reply says AI data centers could add 26.3 GW to power demand.
Wood Mackenzie projects data center electricity use will climb from 10 TWh in 2025 to 191 TWh by 2040, about 7% of India’s total demand.
The government says more than Rs 9 lakh crore is earmarked for transmission, and expects the additional AI-linked load to be served primarily by renewable capacity.
- Who
- India’s data center sector and the government agencies planning for electricity demand.
- What
- Rapid data center expansion is expected to substantially increase electricity demand.
- When
- Capacity and demand forecasts cover 2025 through 2040, with government estimates for 2031–32.
- Where
- India.
- Why
- Growth in cloud adoption, 5G, data localisation, and artificial intelligence is driving data center construction.
- Data center capacity in 2025
- About 1,575 MW, up from about 375 MW in 2020 according to the government release.
- Projected operational capacity by 2030
- 12 GW, up from 2.2 GW in 2025, according to Wood Mackenzie.
- Projected data center electricity use in 2040
- 191 TWh, compared with 10 TWh in 2025, according to Wood Mackenzie.
- Estimated share of India’s electricity demand in 2040
- About 7% for data center energy consumption, according to Wood Mackenzie.
- Government estimate for 2031–32
- A Ministry of Power estimate cited in a March 13 PIB release put data center electricity demand at 13.56 GW.
- Later government estimate
- A July parliamentary reply said AI data centers would add 26.3 GW to India’s power demand by 2031–32.
- Transmission investment
- More than Rs 9 lakh crore has been earmarked for transmission under the National Electricity Plan.
- Expected power source
- The additional AI-linked load is expected to be integrated into the grid and served primarily by renewable energy capacity.