India’s biggest business houses are moving fast to build the country’s digital future. The Adani Group has announced a $100-billion plan to set up renewable-energy-powered, AI-ready data centres by 2035. Google is expanding its cloud presence. Reliance Industries is strengthening its digital ambitions through Jio. Meta also sees India as one of its most important markets.
Most of the new projects are coming up in Maharashtra, especially around Mumbai. Karnataka and Andhra Pradesh are next in line. Cities such as Bengaluru, Hyderabad, Chennai, Pune and Noida are becoming major data centre hubs.
The government is backing this push. The Union Budget has extended tax benefits until 2047 for foreign cloud companies using Indian data centre infrastructure. Speaking at the AI Impact Summit expo, Prime Minister Narendra Modi said, “Data centres will be a massive job creator for our youth, we invite the whole world’s data to reside in India.”
India already has 132 operational data centres. Another 84 are expected to be built across 17 cities by 2029. Several large “gigawatt-scale” campuses are also being planned. Industry estimates say the sector could grow five times by 2030.
Read More | Can India Catch Up in the Global Chip Race?
The growth story sounds impressive. But there is a basic question that needs attention.
As India bets on building data centres, where will the water come from?
Data centres run powerful computers 24/7. These machines produce a lot of heat. To keep them from overheating, most facilities use water-based cooling systems. And they need a lot of water.
A single large AI data centre can use nearly 5,00,000 gallons — about 19 lakh litres — of water every day. That is close to 10 per cent of what a small city might use daily.
This is not just a theory.
In Newton County in the US, residents reported low water pressure and stressed wells after a large data centre project began construction in 2018. In India, villagers in Tusiyana in Greater Noida have shared similar concerns. The village sits next to the 8,20,000-square-foot Yotta Data Centre Park that opened in 2022. People there say groundwater levels have fallen sharply. Water that was once found at 20 to 30 feet now requires digging down to 80 feet.
Despite this, Uttar Pradesh has signed a Rs 39,000-crore agreement to build six more such data centres over the next seven years.
All this is happening in a country that already struggles with water shortages. Many Indian cities face severe water stress every summer. Chennai has come close to running dry in recent years. Parts of Maharashtra and Bundelkhand regularly deal with drought-like conditions. Groundwater levels are falling in many states due to overuse and weak monsoons.
And data centres, however, cannot use just any water. They need fresh water.
Why not recycled or treated water?
The answer is simple. Water contains minerals like calcium and magnesium. When water is used again and again in cooling systems, some of it evaporates. The minerals stay behind and become more concentrated. Over time, they form a hard layer called limescale. This layer blocks pipes, damages equipment and reduces cooling efficiency.
Recycled water usually contains even more minerals. To make it safe for cooling systems, companies would need expensive treatment plants. In many Indian cities, the infrastructure to supply large amounts of treated recycled water does not exist. So, using fresh municipal water becomes the easier and cheaper option.
Experts warn that water use by AI data centres could rise sharply in the coming years. Some global reports suggest consumption may grow many times over by 2028. Many of these facilities are being built in areas that already face water shortages.
Read More | Sustainability in Tech Infrastructure: A Mere Buzzword?
Companies often talk about water replenishment projects. But these projects are sometimes located far from where the water is actually taken. That does not help the local community sharing its supply with a large industrial facility.
For states like Maharashtra, Karnataka and Andhra Pradesh, the choice is not simple. These regions already face seasonal water stress. Their cities are growing fast. Climate change is adding more pressure. Can local water systems handle large new industrial demand?
India wants to become a global AI leader
It wants the world’s data to be stored and processed here. That vision promises growth and technological strength. But water is a basic need. Millions of Indians still depend on tankers during peak summer months.
Read More | Is the AI Revolution Built on Genius or on Gimmicks?
As the country builds more data centres, one question cannot be ignored: in a water-stressed nation, how will India balance digital growth with the everyday need for clean, reliable water? And who will get priority when supplies run low?
