Booming data centers in India: Emphasis on sustainability, intelligence, and position for global dominance
India is making significant strides in the data center sector, with operators proactively integrating renewable power and setting global benchmarks for clean cloud infrastructure. This shift towards sustainability is driven by a combination of policy measures, incentives, and technological advancements.
Policy Measures and Incentives
The Indian government has implemented several policy measures to promote sustainable data centers. These include:
- Data Localization Laws: The Digital Personal Data Protection Act has spurred the establishment of domestic data centers, encouraging investments to comply with data sovereignty requirements and fostering economic growth.
- Government Incentives: At both the central and state levels, incentives such as tax benefits, real estate subsidies, and streamlined approvals are offered to encourage private investments. This promotes the development of sustainable infrastructure by making land and power more affordable and accessible.
- Draft National Data Center Policy: The draft policy, proposed by MeitY, aims to attract investments by providing single-window clearances, incentives, and the creation of four dedicated Data Center Economic Zones (DCEZs).
- Power Policies Encouraging Renewable Energy Sourcing: States like Rajasthan and Gujarat are leading the adoption of renewable energy, with data center operators investing in clean energy to reduce carbon footprints and align with India's broader sustainability goals.
Technological Advances
The push towards sustainability is also supported by technological advances in energy-efficient designs. These include the promotion of advanced energy-efficient cooling technologies (liquid cooling, rear door heat exchangers, direct-to-chip cooling) in high-density data centers.
Decentralization and Regional Growth
India is also encouraging the expansion of data infrastructure into smaller cities to leverage available land for green infrastructure and reduce pressure on metro areas. This strategic push towards Tier II/III city development promotes regional economic growth and lowers environmental impact.
Ambitious Solar Power Integration
Private sector investments and collaboration with government incentive programs have led to the development of ambitious solar power farms integrated with data center campuses, such as CtrlS' solar farm in Mumbai, which covers 60% of its energy consumption.
Looking Forward
With these measures in place, India's data center capacity is expected to more than double from 1.5 GW in 2024 to 3.4 GW by 2030. The Indian government should continue to invest in green hydrogen and energy storage, incentivize the development and adoption of efficient cooling technologies, and mandate net-zero emission targets for the data center sector to further drive sustainability in this sector.
- The Indian government's implementation of data localization laws, like the Digital Personal Data Protection Act, is fostering investments in domestic data centers and promoting economic growth.
- To encourage private investments, government incentives such as tax benefits, real estate subsidies, and streamlined approvals are offered for the development of sustainable infrastructure in the data center sector.
- The use of energy-efficient cooling technologies, such as liquid cooling, rear door heat exchangers, and direct-to-chip cooling, supports the shift towards sustainability in high-density data centers.
- By developing ambitious solar power farms integrated with data center campuses, such as CtrlS' solar farm in Mumbai, India is leading the way towards carbon neutrality in the data center sector.
