India's Data Centres to Drive Massive Electricity Demand by 2030

India is projected to become APAC’s second-largest consumer of electricity for data centres by 2030, with demand rising fivefold to 57 TWh. Driven by AI adoption and massive investments, the industry is embracing renewable energy, requiring an additional 15-30 GW. Companies like AWS and Sify target 100% renewable energy by 2030. State incentives and untapped solar and wind potential position India to balance data centre growth with sustainability and energy efficiency.

India is on track to become the second-largest consumer of electricity for data centres in the Asia-Pacific (APAC) region by 2030, overtaking Japan and Australia. This prediction, revealed in a report by S&P Global, highlights the rapid growth of the country's digital infrastructure and its implications for energy demand.

Electricity Consumption Set to Triple

According to the S&P Global report, data centres in India will account for 2.6% of the nation’s total electricity consumption by 2030, a significant leap from the current 0.84% in 2024. This spike is driven by a fivefold increase in energy requirements, with data centre power demand projected to surge from 13 terawatt-hours (TWh) in 2024 to 57 TWh by 2030. This translates to an impressive annual growth rate of 28%.

One of the key contributors to this trend is the adoption of artificial intelligence (AI) technologies. Under the government’s AI Mission, 34,317 graphics processing units (GPUs) have been allocated to data centre operators, with half already installed. Once fully operational, these GPUs are expected to consume an additional 2 TWh of electricity, representing 10% of the total power demand from data centres in 2025.

Renewable Energy to Bridge the Gap

Despite the sharp rise in energy consumption, the report underscores that India's renewable energy capacity will be more than adequate to meet the additional demand. S&P Global estimates that data centres will require an extra 15-30 gigawatts (GW) of power, accounting for about 10% of the country’s planned renewable energy additions during this period.

India’s untapped solar and wind energy potential, coupled with increasingly competitive battery storage solutions, positions the nation to handle this surge sustainably. Hybrid renewable models, which combine solar, wind, and storage, are now cost-competitive with conventional energy sources, making them an attractive option for powering data centres.

Industry Commitment to Sustainability

Major data centre operators in India have already set ambitious targets for sourcing 100% of their energy from renewable sources. Amazon Web Services aims to achieve this goal by 2030, while companies like Sify Technologies, NxtGen Data Centre, and ST Telemedia are targeting 2027, 2025, and 2026, respectively.

This commitment to sustainability is reflected in the sector's significant investment activity. Over the past two years, both global and domestic players have pledged a combined $32 billion toward building and expanding data centres in India. Notably, half of the country’s data centres are operated by Indian firms, followed by companies headquartered in Japan (19%), Singapore (over 17%), and the United States (9.9%).

State Support Boosts Data Centre Growth

India’s rapid data centre expansion has been bolstered by proactive state-level policies. States like Maharashtra, Telangana, and Karnataka, which together account for 70% of the country’s data centre capacity, offer subsidies and guaranteed uninterrupted power supply to attract investment. Uttar Pradesh is also emerging as a major hub with similar incentives.

India's data centre industry is entering a transformative phase, poised to become a global leader in energy consumption while setting an example in renewable energy integration. With strong government support, ambitious sustainability goals, and increasing investments, the sector is well-positioned to balance rapid growth with environmental responsibility.

As the demand for digital services continues to soar, India’s ability to sustainably power its data centre ecosystem will be a critical factor in shaping the country’s technological future.