Power Ministry Draws AI Era Grid Roadmap

21 Jul 2026 CW Team

India's data centre capacity is projected to rise from around one point six gigawatt (GW) currently to 26 GW by 2031-32 and to 37 GW by 2040 as artificial intelligence, cloud computing and digital services expand. The ministry, the Central Electricity Authority, state transmission utilities and discoms are assessing the electricity infrastructure needed to support the sharply increased compute capacity. The planned roadmap will examine generation, transmission and local distribution upgrades in line with capacity additions.

Dual-grid availability is being discussed to provide supply redundancy so facilities can remain operational during outages, maintenance or network disruption. Transmission congestion is under review in regions where multiple projects are expected to concentrate, with southern states and the western region identified for closer assessment because of emerging clusters and renewable-energy potential. The ministry is evaluating whether existing networks can absorb proposed loads and where additional lines, substations and connectivity will be required.

Discom preparedness at local distribution level is seen as critical because inadequate substations or feeder capacity could delay projects even when generation and transmission are adequate. Developers’ demand for cleaner electricity is prompting evaluation of renewable power availability alongside measures to deliver round the clock reliability. The discussion includes consideration of battery energy storage systems, supply stabilisation and transmission uptime and downtime to ensure uninterrupted operations of energy intensive computing infrastructure.

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The power ministry is preparing a roadmap to secure energy supply for the rapid expansion of data centres and has opened dialogue with developers, state transmission utilities and distribution companies. The consultations aim to ensure reliable supply, dual-grid connectivity, green power access, transmission capacity and grid stability, according to a senior ministry official. The exercise seeks to align data centre investments with transmission expansion, discom preparedness and storage deployment. The ministry intends to prepare the power system ahead of large electrification from AI-led investments. India's data centre capacity is projected to rise from around one point six gigawatt (GW) currently to 26 GW by 2031-32 and to 37 GW by 2040 as artificial intelligence, cloud computing and digital services expand. The ministry, the Central Electricity Authority, state transmission utilities and discoms are assessing the electricity infrastructure needed to support the sharply increased compute capacity. The planned roadmap will examine generation, transmission and local distribution upgrades in line with capacity additions. Dual-grid availability is being discussed to provide supply redundancy so facilities can remain operational during outages, maintenance or network disruption. Transmission congestion is under review in regions where multiple projects are expected to concentrate, with southern states and the western region identified for closer assessment because of emerging clusters and renewable-energy potential. The ministry is evaluating whether existing networks can absorb proposed loads and where additional lines, substations and connectivity will be required. Discom preparedness at local distribution level is seen as critical because inadequate substations or feeder capacity could delay projects even when generation and transmission are adequate. Developers’ demand for cleaner electricity is prompting evaluation of renewable power availability alongside measures to deliver round the clock reliability. The discussion includes consideration of battery energy storage systems, supply stabilisation and transmission uptime and downtime to ensure uninterrupted operations of energy intensive computing infrastructure.

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