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India Data Centres To Consume 191 TWh By 2040 Driving Renewables
POWER & RENEWABLE ENERGY

India Data Centres To Consume 191 TWh By 2040 Driving Renewables

A Wood Mackenzie report says India's operational data centre capacity is projected to increase more than fivefold to 12 gigawatt (GW) by 2030 from 2.2 GW in 2025 as artificial intelligence (AI) and cloud computing drive demand.

It projects electricity consumption to rise from 10 terawatt-hour (TWh) in 2025 to 191 TWh by 2040.

The study forecasts a compound annual growth rate of around 40 per cent and notes AI-dedicated capacity will surge nearly 24-fold from 275 megawatt (MW) in 2025 to 6,546 MW by 2030.

The report places India's digital economy at Rs 32 trillion (tn) in 2025 and says it contributes about 12 per cent to gross domestic product.

It records more than 1.03 billion (bn) active internet users and nearly 22 bn unified payments interface transactions each month, and projects the domestic AI market to reach Rs 11.7 tn by 2032.

These indicators are cited as drivers of demand for high performance computing infrastructure.

Wood Mackenzie anticipates data centre electricity demand will account for around seven per cent of national consumption by 2040, underlining the need for new power solutions.

Maharashtra and Tamil Nadu currently account for nearly 65 per cent of installed information technology load, but the next phase of expansion is expected to spread to Andhra Pradesh, Telangana, Uttar Pradesh and Karnataka.

The study highlights investments from global hyperscalers and domestic operators, noting a 2.6 GW development pipeline announced by AdaniConnex.

The analysis identifies access to reliable and affordable power as the main determinant of site selection, surpassing land and capital constraints, and reports developers are securing supply through captive generation and long term renewable power purchase agreements.

It also flags water availability as an emerging constraint as AI workloads raise cooling needs, and states that closed loop cooling and zero liquid discharge technologies will aid regulatory resilience.

The report concludes long term competitiveness will depend on securing firm power, managing water resources and choosing infrastructure resilient locations.

A Wood Mackenzie report says India's operational data centre capacity is projected to increase more than fivefold to 12 gigawatt (GW) by 2030 from 2.2 GW in 2025 as artificial intelligence (AI) and cloud computing drive demand. It projects electricity consumption to rise from 10 terawatt-hour (TWh) in 2025 to 191 TWh by 2040. The study forecasts a compound annual growth rate of around 40 per cent and notes AI-dedicated capacity will surge nearly 24-fold from 275 megawatt (MW) in 2025 to 6,546 MW by 2030. The report places India's digital economy at Rs 32 trillion (tn) in 2025 and says it contributes about 12 per cent to gross domestic product. It records more than 1.03 billion (bn) active internet users and nearly 22 bn unified payments interface transactions each month, and projects the domestic AI market to reach Rs 11.7 tn by 2032. These indicators are cited as drivers of demand for high performance computing infrastructure. Wood Mackenzie anticipates data centre electricity demand will account for around seven per cent of national consumption by 2040, underlining the need for new power solutions. Maharashtra and Tamil Nadu currently account for nearly 65 per cent of installed information technology load, but the next phase of expansion is expected to spread to Andhra Pradesh, Telangana, Uttar Pradesh and Karnataka. The study highlights investments from global hyperscalers and domestic operators, noting a 2.6 GW development pipeline announced by AdaniConnex. The analysis identifies access to reliable and affordable power as the main determinant of site selection, surpassing land and capital constraints, and reports developers are securing supply through captive generation and long term renewable power purchase agreements. It also flags water availability as an emerging constraint as AI workloads raise cooling needs, and states that closed loop cooling and zero liquid discharge technologies will aid regulatory resilience. The report concludes long term competitiveness will depend on securing firm power, managing water resources and choosing infrastructure resilient locations.

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