Mumbai (South Asian Desk) – India data centers water crisis escalates as the sector’s rapid expansion devours vast quantities of water for cooling amid acute shortages. On Monday, August 25, 2025, at 4:35 PM, experts warn that without urgent reforms, this strain could disrupt essential services across the nation. The boom, fuelled by AI demands, sees facilities in Mumbai and beyond consuming billions of litres yearly, with projections showing a 138% rise by 2030. Government think tanks urge treated wastewater reuse to avert catastrophe.
Data Centre Boom Water Strain India Intensifies
India faces a stark data centres water crisis as investments pour into the sector. Capacity stands to grow 77% to 1.8 gigawatts by 2027, backed by $25-30 billion in expansions. Tech giants lead the charge. Google commits $15 billion to an AI facility in Andhra Pradesh. Amazon Web Services, Meta, and Reliance Industries build out infrastructure. This data centre boom water strain India endures stems from AI’s data hunger. India will generate 20% of global data by 2028 yet hosts just 3% of worldwide capacity.
Water use soars in tandem. Facilities guzzle 150 billion litres in 2025 alone, set to double-plus to 358 billion by 2030. Cooling systems evaporate vast amounts. An S&P Global analysis flags 60-80% of sites under high stress this decade. Urban clusters bear the brunt. Mumbai hosts key hubs like Yotta Infrastructure’s Navi Mumbai plant. Hyderabad, Chennai, and Bengaluru follow suit. These Mumbai data hubs water shortage risks amplify local woes. Residents compete for dwindling supplies. In Visakhapatnam, Google’s project draws fire from groups like the Human Rights Forum over resource diversion.
The data centre boom water strain India witnesses ties to broader scarcity. India claims 18% of world population but 4% of resources. Precipitation averages 4,000 billion cubic metres yearly, yet usable flows lag. Central Water Commission data underscores this gap. Wastewater generation hits 38,000 million litres daily in cities over 50,000 people. Untapped potential exists. NITI Aayog’s Composite Water Management Index reveals only 40% of states maintain integrated water data centres for tracking. Updates falter in places like Uttar Pradesh and Rajasthan.
Sustainable Data Centers India Water Management Lags Policies
Sustainable data centers India water management demands action, yet regulations fall short. Ministry of Electronics and Information Technology guidelines cover zoning and energy but skip water mandates. Draft Data Centre Policy 2020 pushes growth without reuse clauses. Sahana Goswami of World Resources Institute India calls it a “significant blind spot.” She adds: “Imagine shutdowns of data centres in peak summer due to lack of water for cooling – how might this impact banking services, medical systems in hospitals using cloud services, transit system operations and more.”
NITI Aayog steps in with fresh calls. A November workshop in Bengaluru, hosted with Karnataka government, spotlights treated wastewater reuse. Member Dr Vinod K Paul stresses integration for data centres. He states: “Need for State level policies on the reuse and developing enforceable common standards for different uses; integrating the used water reuse for emerging areas of water requirement like data center.” The event draws officials from 18 states, experts, and partners like UNICEF. It highlights Gujarat’s 70% reuse target by 2025 and Maharashtra’s grey water tech.
Praveen Ramamurthy, water expert at Indian Institute of Science Bengaluru, pushes mandates. “Non-potable or treated water must be made mandatory for cooling needs,” he says. He advocates zero-water tech and low-stress site selection. Vibhuti Garg of Institute for Energy Economics and Financial Analysis sees opportunity. “Just like we exploited the IT services boom through the 90s and 2000s, this is another opportunity that we can use to our advantage.”
Power ties in. Data centres eye 1-2% of national demand by 2030, up from 0.5-1%. Fossil reliance looms absent renewables push. Karnataka Chief Secretary Shalini Rajneesh notes 2024 crisis responses. Her state reuses for lakes and industry.
Mumbai Data Hubs Water Shortage Sparks Local Backlash
Mumbai data hubs water shortage hits hardest in Navi Mumbai. Yotta’s facility pulls from municipal lines, clashing with resident needs. Broader data centres water crisis ripples out. Andhra Pradesh locals protest Google’s Visakhapatnam build amid basin stress.
NITI Aayog’s index scores states on reuse. Tamil Nadu excels in tertiary treatment for industry. Indore blends sectors for uptake. Yet gaps persist. Only 58% of urban homes face charges, curbing conservation. Delhi leads revenue from reuse.
International models inspire. Singapore’s association shares financing tips. Israel’s rep eyes South India ties. Workshop ends with plant visits, showcasing K&C Valley’s advanced systems.
Why This Matters in South Asia
The India data centers water crisis extends beyond borders. South Asia grapples shared rivers and climate hits. Indus and Ganges basins feed Pakistan, Bangladesh. India’s 4% resource share with 18% population sets precedent. Sustainable data centers India water management could model reuse for neighbours. Failure risks regional tensions over flows. NITI’s push aligns with SDGs, urging cross-border tech swaps. As AI booms, water equity defines growth.
Background
India’s IT surge since 1990s built digital backbone. Data centres evolved from servers to AI behemoths. Water entered spotlight post-2020 policies. NITI’s 2023 index flags data voids. 2025 projections from Kotak Research and IEA amplify alarms. Central schemes like Jal Jeevan Mission tap 95% households in spots like Puducherry, yet urban-industrial pull intensifies.
What’s Next
States target 2030 policies per NITI. Common standards loom for reuse. Data firms eye treated sources. Monitoring grids and health checks advance. Behaviour campaigns follow. Circular shifts promise resilience.
This data centres water crisis tests India’s balance of tech ambition and resource guard. Forward steps in sustainable data centers India water management hold keys to enduring hubs.
Published in SouthAsianDesk, November 10th, 2025
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