Answer

The exponential growth of AI-driven applications has triggered a surge in the establishment of large-scale data centres in India. According to CRISIL (2024), India’s data centre capacity is projected to double by 2026. While this boosts India’s ambitions as a global digital hub, it raises critical environmental challenges that must be addressed to ensure alignment with India’s net-zero 2070 and sustainability goals.

Rapid Growth of AI Data Centres in India

• Increased Demand for AI and Cloud Services: The rapid rise in AI applications, including machine learning and cloud computing, has driven a surge in data centre construction across India.
  For example: By 2025, India’s AI data centre market is expected to grow at a compound annual growth rate (CAGR) of 15-25%, supported by tech giants like Amazon and Microsoft setting up large-scale facilities.
• Government Initiatives Supporting Digital Infrastructure: The government’s Digital India initiative and policy frameworks have provided a conducive environment for the expansion of AI and cloud-based data centres.
• Rise of AI Startups and Research: With a growing number of AI-focused startups and research institutes, the demand for high-performance computing (HPC) infrastructure has surged.
• Increased Investment from Global Tech Firms: Multinational companies have significantly expanded their presence in India, establishing advanced AI data centres to cater to local demand and international markets.
  For example: Google and Facebook have announced investments of $1 billion each in data centre infrastructure in India by 2025 to support AI, machine learning, and big data analytics.
• Expansion of 5G Network and IoT: The rollout of 5G technology and the growing number of IoT devices are contributing to a higher need for local data storage and processing power.
  For example: With 5G expected to cover 60% of India by 2025, telecom operators are increasing investments in AI-driven data centres for low-latency processing.
• Infrastructure Growth in Tier 2 and Tier 3 Cities: Data centre development is increasingly shifting to smaller cities, reducing infrastructure pressure in major urban centres and promoting regional growth.
  For example: In 2024, the first AI-powered data centre in Lucknow was launched, offering affordable computing power and storage solutions to local businesses and startups.

Potential Environmental Challenges Posed by the Rapid Growth of AI Data Centres in India

• Massive Increase in Energy Demand: AI data centres require huge energy supplies for computation, cooling, and storage, leading to higher carbon emissions if sourced from fossil fuels.
  For example: According to NITI Aayog (2024), India’s data centre sector could demand up to 5% of national electricity consumption by 2030.
• Increased Carbon Footprint and Emissions: The reliance on coal-heavy grids raises concerns over India’s ability to meet its Net Zero 2070 targets.
  For example: Mumbai’s data centres, largely dependent on Maharashtra’s fossil-fuel-based energy mix (57% coal), contribute significantly to urban GHG emissions.
• Severe Water Stress Due to Cooling Requirements: Data centres consume millions of gallons of water annually for cooling, aggravating water scarcity in already-stressed regions.
  For example: Hyderabad, a major data centre hub, faces a projected 40% shortfall in water supply by 2035 (CII Water Report 2024).
• Land Use Changes and Urban Sprawl: Large-scale data parks can lead to deforestation, biodiversity loss, and peri-urban land degradation.
  For example: Planned data parks around Pune and Noida require clearing of agricultural and forest buffer zones for infrastructure development.
• E-Waste Generation from Server Upgrades: Frequent hardware replacements due to AI’s evolving computational needs add to India’s growing electronic waste burden.
  For example: India generated over 1.1 million tonnes of e-waste in 2023 (Global E-Waste Monitor), a figure expected to double by 2030.
• Heat Island Effect and Localised Climate Impact: Data centres release substantial waste heat into the environment, intensifying the urban heat island effect.
  For example: Studies in cities like Bengaluru show that areas with dense tech parks are 2-3°C hotter than surrounding regions.

Government Measures to Ensure AI Infrastructure Expansion Aligns with India’s Long-Term Sustainability Goals

• Promotion of Renewable Energy in Data Centres: Encouraging the use of renewable energy sources to power data centres reduces reliance on fossil fuels.
• Energy Efficiency Standards and Regulations: The government has set energy efficiency norms for data centres to optimise electricity consumption.
  Example: The Bureau of Energy Efficiency (BEE) introduced energy efficiency guidelines for data centres in 2023, focusing on energy-saving cooling and server systems.
• National Mission on AI and Renewable Energy Integration: Promoting AI’s role in optimising energy use and supporting renewable energy adoption in data centres.
  Example: The National AI Strategy (2021) encourages AI solutions for improving renewable energy integration in digital infrastructure.
• Implementation of Circular Economy for E-Waste Management: Promoting e-waste recycling and reuse to reduce electronic waste generated by data centres.
  Example: The E-Waste (Management) Rules, 2023, mandate data centres to recycle old servers and electronics.
• Smart Grid and Energy Storage Initiatives: Investing in smart grids and energy storage to ensure a reliable green power supply for data centres.
  Example: The Smart Cities Mission (2024) includes smart grids to manage renewable energy flow to urban data centres.
• Public-Private Partnerships for Sustainable AI Infrastructure: Encouraging collaboration between the government and private sector for green data centre projects.

India must balance its digital aspirations with environmental responsibility. A strategic, green-centric approach to AI infrastructure development can make India not only a global digital powerhouse but also a leader in sustainable technology governance.

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