Data Centre Energy Rising Demand in India
India’s demand for energy for data centres is on the rise, and it’s not slowing down anytime soon. In the first half of 2024, the country witnessed a significant 21 per cent increase in power consumption by data centres, from 778 megawatts (MW) in the same period of 2023 to nearly 942 MW. This surge in power demand from data centres is driven by the increasing need for data centre capacity in India.
Growing Power Demand from Data Centres
Data centre energy demand in India surges at an unprecedented rate. The market witnessed IT capacity deals totaling approximately 200 MW in just six months. Experts project this figure will double, reaching 400 MW by year’s end. Industry specialists anticipate data facilities will continue to increase their power requirements. The burgeoning banking, financial services, and insurance (BFSI) sectors primarily fuel this expansion. The nation’s overall consumption will inevitably rise as a result. Addressing the escalating power needs of digital infrastructure has therefore become paramount.
Sector-Driven Growth
Furthermore, the growth in the BFSI sectors is a major contributor to the surge in power demand from data centres. In fact, the BFSI sectors are among the largest consumers of data centre services in India. Therefore, as these industries continue to expand, their reliance on data centres for operations and storage will only increase, further fuelling the demand for energy.
Projected Capacity Requirements
Data centre energy demand in India is poised for explosive growth. Srihari Srinivasan, a data centre services specialist, forecasts a robust need for capacity by 2024’s end. He anticipates a staggering 400 MW requirement across key urban centers. Undeniably, this surge in digital infrastructure will trigger a spike in the nation’s overall consumption. Consequently, the development of eco-friendly solutions becomes imperative. These measures will be crucial in addressing the mounting power requirements of these facilities. Moreover, they will help mitigate the environmental impact of this digital expansion. In essence, sustainable strategies are no longer optional but a necessity in this rapidly evolving landscape.
Top Cities for Data Centre Capacity
Additionally, among the market-leading cities, Mumbai tops the list with 54.9 per cent of the total capacity, followed by Chennai (12.3 per cent), Bangalore (8.2 per cent), and Pune (7.2 per cent). These cities are expected to drive the growth of data centre energy demand in India, making it essential to develop strategies that mitigate the environmental impact.
In conclusion, the rising data centre energy demand in India is a pressing concern that requires attention and action. As the country continues to urbanize and digitalize, it’s essential to address the growing power demand from data centres and ensure a sustainable future for the industry. By developing innovative solutions to meet the increasing demand for energy, India can mitigate the environmental impact of its growing data centre sector and ensure a bright future for its citizens.