New Delhi Backs Green Data Centres to Power AI Growth Sustainably

As artificial intelligence (AI) rapidly expands across global industries, the Indian government is positioning the country to lead the future of sustainable AI by integrating green energy into hyperscale data centres. With global data processing needs expected to surge, officials believe India’s vast renewable energy (RE) capacity and its emerging AI ecosystem together offer a unique opportunity to develop environmentally responsible infrastructure that can power the digital economy while reducing carbon impact.

India’s potential lies in its ability to deliver clean power swiftly, thanks to its modular solar and wind infrastructure. With 300 sunny days annually and strong wind corridors, the country is on track to meet its target of sourcing half its electricity from non-fossil fuel sources by 2030. This makes it an ideal location for hosting energy-intensive AI operations. At the same time, India’s AI market is set to touch $7.8 billion by 2025, driven by a rise in digital services and a vibrant start-up ecosystem with access to 20% of the world’s AI talent. The Indian data centre market is growing at an unprecedented pace, with capacity expected to reach 3,243 MW by 2030. Unlike conventional infrastructure, data centres require precision engineering, redundancy in energy supply, and secure, low-latency connectivity.

While diesel generators currently dominate as backup power sources, greener alternatives like six-hour lithium battery banks and 48-hour hydrogen fuel cells are now being explored. Innovations such as water-generating fuel cells could also tackle the water scarcity challenges that restrict hyperscale data centre growth in many regions. Prominent projects in Pune and Hyderabad have already demonstrated that 100% renewable energy can power large-scale AI data centres. These examples reflect the government’s push through the ‘Make in India’ initiative to create a globally trusted, climate-aligned AI and cloud computing hub. Officials are calling for a national net-zero data centre policy, which would mandate site selection based on access to round-the-clock clean energy and green backup systems, helping future-proof India’s digital infrastructure.

In parallel, efforts are being made to scale technical expertise in building secure, autonomous data centres, while also encouraging water- and energy-efficient design configurations. Publicly funded demonstration projects are expected to stimulate innovation in this sector. With strategic site allocation, policy support, and clear standards for data security, India can offer global businesses a reliable and ethical destination to house their AI operations powered by clean energy.

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New Delhi Backs Green Data Centres to Power AI Growth Sustainably