Did you know that our cities lose up to 30 per cent or more of their water as it is distributed across them? The causes include old and leaking pipes that have aged or broken; illegal, unauthorised and unmetered water connections; and, sometimes, the long distances over which pipelines are laid for distribution. But this is not about water; it is about how saving this water could help cities generate the resources required to harness the AI-powered data centre opportunity.

In late July, we held our AI-Powered Data Centre Conference, and the verdict was clear: India has the demand, talent, digital momentum, market and, increasingly, the policy intent. We must only ensure that we also have the infrastructure discipline.

Can we build data centres without worsening urban water stress?

Can we power AI without overloading the grid? Can we attract global capital while protecting national data interests?

Mumbai’s municipal corporation imposed a 10 per cent water cut after observing that daily water demand is about 4,665 mld, while supply is about 4,100 mld, leaving a shortfall of 565 mld.

At the same time, reports indicate that more than 900 mld of treated water may be lost through leakages and illegal connections – more than the city’s demand-supply gap itself. If we can fix this leakage too (pun intended), we could home in on the data centre opportunity, which could bring a huge inflow of foreign capital. In other words, data centre growth could be seen as a trigger to modernise urban infrastructure.

To provide some perspective, India hosts nearly 20 per cent of the world’s data but accounts for only about 3 per cent of global data centre capacity. Our data centre capacity grew from about 375 mw in 2020 to around 1.5 gw by 2025. In the first half of 2026, capacity surged by 59 per cent, taking the total to 1.8 gw. This is estimated to rise to 6.5 gw by 2030. Their construction could add Rs.1.5 trillion in investment towards civil construction, along with a much higher investment in MEP, power and cooling technologies and solutions.

Although we have trained talent domestically, over 90 per cent of the work in digital technology is being carried out for overseas clients. The challenges include attracting young talent to the industry, the ability to pay, low margins, and inadequate recognition of wastage as a significant cost.

The industry uses a considerable amount of technology in its operations. The use of WhatsApp for exchanging documents, voice notes, images and videos is intense. Digital technologies such as BIM and digital twins are used for design, but on a lesser scale during execution, where adoption is more dependent on the client’s mandate.

Precast technologies, on the other hand, have not yet reached the inflection point at which they become a ‘no-brainer’. It appears that when public and private-sector clients begin to realise the advantages of precision in procurement, and the time and resources saved by avoiding delays, digital technologies will increasingly become a necessity.

As towers go higher and budgets rise even further, the risks of wastage and the cost of inefficiency will become untenable. For mass housing projects in India – those exceeding 500 units, such as PMAY housing clusters in Maharashtra, Gujarat and Telangana – it has been found that precast construction can reduce overall project costs by 8 per cent to 15 per cent at scale.

A powerful 15-member jury is evaluating innovations in construction that will be on display at The ConTech Show on 19-20 August 2026 in Mumbai. The show will include a two-day Construction Technology Summit, the 21st Construction World Architect & Builder Awards, and an exhibition of innovations in the built environment.

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