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Will water, power trip data centre growth in India?
Mint Mumbai
|December 16, 2025
In 2025, up to $70 billion has been pledged to develop 6 gigawatts (GW) of data centre capacity in India.
While this could power India's AI ambitions, experts warn that limited freshwater supplies and the need for uninterrupted energy may hurt the sector's growth. Mint explores.
1 What are key concerns over data centre bets?
The main concern is over water consumption. India's per-capita water availability was already 13% below the benchmark of 1,700 cubic metres in 2021, the Observer Research Foundation (ORF) said in a note dated 25 August. ORF projected this would fall to 1,367 cubic metres, almost 20% below the threshold. This does not take into account the rise of data centres. Typically, data centres deploy thousands of processing chips that work round the clock to deliver the services used today. The rise of data centre deployment will thus require at-scale cooling solutions, which typically use massive amounts of water.
2 Why is water crucial for data centres?
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