Expansion of India's Data Centers: Becoming More Environmentally-Friendly, Intelligent, and Set to Rule the Global Market
=================================================================================
India is taking significant strides in the development and operation of sustainable data centers, with a blend of regulatory pushes, fiscal incentives, and support for renewable energy adoption. This strategic approach aims to create a robust, green digital infrastructure that supports AI, 5G, and cloud growth while minimizing environmental impact.
One of the key initiatives is the enactment of data localization laws under the Digital Personal Data Protection Act, 2023. These rules mandate that sensitive Indian data be stored domestically, fostering investments in local data center infrastructure and maintaining data security and sovereignty.
The government also offers various financial incentives at both central and state levels. For example, Maharashtra provides green data center incentives encouraging renewable power use and sustainable infrastructure. State governments are also facilitating data center expansion beyond metropolitan areas by easing real estate regulations and offering subsidies in Tier II and Tier III cities.
Operators are increasingly mandated or incentivized to invest in renewable energy like solar and wind energy to power data centers, especially in states with abundant renewable resources. This policy direction supports sustainability goals and reduces carbon footprint.
The Indian government is also promoting the National AI Mission and Data Centre Park Policy, which supports infrastructure for high-performance computing and AI workloads with an emphasis on sustainability. There is encouragement for the adoption of advanced cooling solutions, energy-efficient designs, and measurement of data centers’ embodied carbon to align with India’s broader climate commitments.
Collaboration between research institutions, startups, and the industry is crucial in accelerating innovation in cooling technologies and energy efficiency. The government is collaborating with key industry players like CtrlS, AWS, Microsoft, Google, and Indian firms such as Jio and Yotta, which invest heavily in green data center technologies and clean energy sourcing, supported by government policies.
In the future, India should support pilot projects for advanced cooling technologies in data centers and continue to develop certification frameworks tailored to local needs. Adopting sustainability at the heart of India's digital infrastructure boom can position it as the world's greenest digital engine, attracting over US$100 billion in cumulative investment by 2027.
Sources:
- Nasscom (2022). India's Data Center Ecosystem: A Growing Opportunity. [Online] Available at: https://www.nasscom.in/resources/reports/indias-data-center-ecosystem-a-growing-opportunity
- The Economic Times (2022). Data Centre Policy: India to Boost Digital Infrastructure. [Online] Available at: https://economictimes.indiatimes.com/tech/internet/data-centre-policy-india-to-boost-digital-infrastructure/articleshow/94789713.cms
- The Hindu BusinessLine (2021). India to Set Up Data Centres for AI and High-Performance Computing. [Online] Available at: https://www.thehindubusinessline.com/info-tech/india-to-set-up-data-centres-for-ai-and-high-performance-computing/article36788144.ece
- The Energy and Resources Institute (TERI) (2021). Greening Data Centres: Opportunities and Challenges in India. [Online] Available at: https://www.teriin.org/sites/default/files/GreeningDataCentres-OpportunitiesandChallengesinIndia.pdf
- To align with India's carbon neutrality goals, the government is encouraging data center operators to invest in renewable energy, such as solar and wind energy, and implement energy-efficient designs.
- The adoption of data-and-cloud-computing technology in India is being guided by a commitment to sustainability, with the government promoting the use of advanced cooling technologies and measurement of data centers’ embodied carbon.
- Green finance plays a crucial role in India's digital infrastructure growth, as both central and state governments offer financial incentives for renewable energy adoption and sustainable data center infrastructure.
- The Indian government's circular economy strategy includes promoting a circular approach in data centers, with a focus on waste reduction, recycling, and resource efficiency, helping to minimize the environmental impact of digital growth.
