E-Paper
Data Centre boom and hidden ecological costs
This article is authored by Monalisa Deka, manager, aerospace division, Manekshaw Centre, IIIT Delhi.
Date Centres have been around in some form or another since the emergence of computing in the late 194s/1950s. yet, due to the lack of a centralised governing authority, there is no official classification for what constitutes a data centre. They can be described as physical facilities that organises or hosted by third parties external to the organisation itself. The data centres, as defined above, host the core IT infrastructure that supports all digital activity across communities, businesses, and the government. There is no doubt that data centres are fundamental to our modern way of living and our dependence on them is set only to increase as our consumption of data continues to grow. Every time we send an email, buy something online, save something to the cloud, or play online video games-it is all made possible via processing that goes on inside the data centre.
India is rapidly emerging as one of the world’s fastest growing economies. With ambitious initiatives such as Digital India and the expanding influence of Artificial Intelligence (AI), cloud computing and digital governance, the country is witnessing an unprecedented surge in the construction of data centres. These massive facilities-often described as the factories of the digital age-store, process and transmit the information that powers everything from online banking to national security systems. while data centres promise economic growth and technological advacement, their ecological footprint raises serious concerns. In a country already struggling with water scarcity, energy deficits and environmental stress, the rapid expansion of data centre infrastructure could deepen existing ecological challenges.
India’s digital transformation has significantly accelerated in the past decade. Under the government’s flagship programme, Digital India, the country has invested heavily in expanding digital infrastructure, promoting e-governance and building a data-driven economy. The rise of AI, fintech platforms and cloud services has further intensifies the demand for large-scale data storage and computing power. Major technology companies- including Amazon Web Series, Microsoft and google have announced large investments in Indian data centres, particularly in cities such as Mumbai, Hyderabad and Chennai. India’s data centre capacity is expected to grow rapidly over the next decades as the country positions itself as a regional hub for digital infrastructure in Asia. However, this expansion comes with a significant ecological costs.
Data centres require enormous amounts of electricity to run thousands of servers continuously. These servers generate heat and must be cooled using complex cooling systems that consume additional power. As India expands its AI capabilities and cloud infrastructure, electricity demand from data centres is expected to increase dramatically. The challenge is that much of India’s electricity still comes from fossil fuels, particularly coal. As a result, the growth of data centres could lead to higher carbon emissions unless renewable energy sources are integrated into the sector. Without careful planning, the digital economy may inadvertently undermine India’s climate commitments under the Paris Agreement. One of the most pressing ecological concern in India is water consumption. Data centres rely heavily on water for cooling systems that prevents servers from overheating. A single medium-sized data centre can consume millions of litres of water annually. This becomes particularly problematic in a country already facing severe water stress. According to recent data released by NITI Aayog, nearly 600 million Indians experience high to extreme water stress, and several major cities face the risk of groundwater depletion. Ironically, many of India’s major data centres hubs-such as Hyderabad and Chennai are located in regions that have already experienced severe water shortages in recent years. The 2019 water crisis in Chennai demonstrated how fragile urban water systems can be. The arrival of large data centre clusters in such regions could intensify competition for water between industry, agriculture and local communities. Data centres also require large tracts of land and infrastructure support. Their construction can contribute to urban sprawl and environmental disruption, particularly in peri-urban areas. Increased electricity demand can strain already overburdened power grids, while large facilities can exacerbate the urban heat-island effect in densely populated cities. Moreover, data centres generate electronic waste as servers and hardware are replaced every few years. Managing this e-waste remains a major challenge in India, where recycling systems are still developing.
Digital infrastructure is essential for economic growth, governance, national security and innovation. However, the environment costs of the digital economy must be addresses proactively. India can adopt several measures to ensure sustainable digital expansion. First, data centres should be required to rely more heavily on renewable energy sources such as solar and wind. Second, advanced cooling technologies that minimise water consumption must become standard practice. Third, stricter environmental regulations and sustainability benchmarks should be integrated into national digital infrastructure policies. As India moves deeper into the age of artificial intelligence and big data, the country faces a critical policy dilemma: how to expand digital infrastructure without compromising ecological sustainability. The success of India’s digital revolution will ultimately depend not only on technological innovation but also on the ability to build a green and sustainable digital ecosystem. Encouraging renewable energy use, mandating water-efficient cooling technologies and strengthening environmental reporting standards for data centres could significantly reduce their ecological footprint.
This article is authored by Monalisa Deka, manager, aerospace division, Manekshaw Centre, IIIT Delhi.
