India's data centres blooming: Becoming more eco-friendly, intelligent, and primed to dominate the global scene
In a significant move towards a greener digital future, the Indian government is supporting the sustainability of its burgeoning data center sector. Policies promoting renewable energy adoption, energy efficiency, and advanced cooling technologies are at the heart of this initiative.
The push for renewable energy is evident as data centers increasingly rely on solar and wind power. States like Rajasthan and Gujarat are leading this transition, aligning with the government's broader renewable energy goals. This shift not only reduces carbon footprints but also meets the growing power demands [1][3][4].
The Digital Personal Data Protection Act and data localization rules have catalyzed investment in domestic data centers, making sustainability a core operational priority alongside compliance and economic growth [1]. Operators are adopting strategies to improve power usage effectiveness (PUE), integrating intelligent energy management systems and efficient uninterruptible power supplies (UPS) with precise and low-loss power conversion [2]. Companies like Fuji Electric and Vertiv provide high-efficiency UPS, active harmonic filters, and solar-hybrid power systems to enhance energy stability and efficiency in data centers.
To address the growing heat output from AI, HPC, and dense workloads, advanced cooling methods such as liquid cooling (direct-to-chip and immersion) and natural-resource-based temperature management are becoming standard. These methods lower energy consumption compared to traditional air-based cooling and improve operational resilience [1][5].
Beyond government mandates, regulatory frameworks and increasing corporate Environmental, Social, and Governance (ESG) commitments motivate data centers to pursue net-zero targets through renewable energy contracts and waste heat reuse programs, ensuring compliance and sustainability leadership [3][5].
In 2022, data centers were granted 'infrastructure status' in India, opening up low-cost financing and simplified regulatory clearances. The Indian government should support pilot projects in advanced cooling technologies for data centers. These policies recognize data centers as essential services and offer financial incentives, fuel subsidies, and support for SMEs and local data center component manufacturing [4].
Tax incentives and preferential financing for certified sustainable data centers will encourage compliance with net-zero emission targets. India can follow suit by setting phased, enforceable net-zero goals aligned with national climate commitments and developing certification frameworks tailored to local needs [5]. Compliance with net-zero emission targets and sustainability certification will attract global investment focused on sustainability in India's data center sector [1].
Data center clusters in regions such as Northern Virginia and the FLAP corridor in Europe have integrated sustainability certification requirements into planning and development guidelines. Facilitating collaboration between research institutions, startups, and the industry will accelerate innovation in data center cooling technologies [2]. Transparent monitoring and reporting mechanisms will foster accountability and continuous improvement in data center sustainability [3].
One of India's largest telecom-backed data center operators has committed to net-zero emissions by 2031. The data center sector in India is likely to attract over US$100 billion in cumulative investment by 2027 [4]. Many Indian states have introduced targeted policies to attract data center operators and investors [5]. India is expected to double its data center capacity from 1.5 GW in 2024 to 3.4 GW by 2030 [4].
The European Union's data center regulations require carbon neutrality by 2030, backed by strict certification systems like LEED and TIA-942. The Indian government should establish national efficiency standards for data centers [5]. AdaniConneX recently secured a US$1.44 billion green loan, the largest in Asia's data center sector [1]. Innovations in AI-managed cooling, liquid immersion, and wastewater recycling are improving energy efficiency and lowering water use in data centers [2].
The Indian government should implement financial incentives and grants for developing and adopting advanced cooling technologies. Edge data centers, smaller and modular hubs that reduce latency, are being set up in Tier-2 cities like Bhubaneswar, Patna, Jaipur, and Coimbatore [5]. These initiatives demonstrate India's commitment to a sustainable and resilient data center sector, aligning with global green digital infrastructure trends.
- The Indian government, in its pursuit of carbon neutrality, should also consider implementing financial incentives and grants for developing and adopting advanced cooling technologies in the data center sector.
- To ensure operational resilience, data center operators are adopting strategies like improved power usage effectiveness (PUE), integrating intelligent energy management systems, and efficient uninterruptible power supplies (UPS) with precise and low-loss power conversion.
- As data centers increasingly rely on solar and wind power, they not only reduce carbon footprints but also meet the growing power demands, with states like Rajasthan and Gujarat leading this transition.
- Companies like Fuji Electric and Vertiv, by providing high-efficiency UPS, active harmonic filters, and solar-hybrid power systems, enhance energy stability and efficiency in data centers, contributing to sustainability efforts.
