Rapid expansion of artificial intelligence and cloud computing infrastructure in India has sparked concerns over rising water consumption, with environmentalists warning of potential strain on urban water resources, even as the Centre said the industry is adopting advanced cooling technologies to mitigate the impact.
According to the NatConnect Foundation, India’s growing data centre ecosystem could consume nearly 37.5 billion litres of water annually — equivalent to the yearly needs of around 7 to 8 lakh people, based on urban consumption norms set by the Central Public Health and Environmental Engineering Organisation.
The estimate has raised alarm among environmental groups, which have flagged the potential implications for water security, particularly in urban areas already facing periodic shortages.
In a letter addressed to the Prime Minister’s Office last month, NatConnect director B N Kumar cautioned that the rapid scaling up of digital infrastructure, driven by AI and cloud services, could exacerbate stress on already limited freshwater resources.
Responding to these concerns, the Ministry of Jal Shakti said the industry is increasingly deploying advanced cooling systems aimed at reducing both water and energy consumption.
Also read: On World Water Day, PM Modi urges saving every drop
“Data centres are adopting advanced cooling systems like direct-to-chip liquid cooling, adiabatic cooling, and immersion systems to minimise both water and energy usage,” said Shambhu Nath Gupta, Under Secretary in the ministry.
India’s data centre capacity has expanded significantly in recent years, rising from 375 megawatts in 2020 to over 1,500 megawatts in 2025, reflecting the rapid digitalisation of the economy and growing demand for cloud-based services.
Officials said that alongside cooling innovations, broader sustainability practices are also being implemented across the sector. These include rainwater harvesting, reuse of treated wastewater, and digital monitoring of groundwater resources to improve efficiency and reduce reliance on fresh water sources.
Experts note that while technological improvements can help curb consumption, the scale of growth in AI and cloud services means that water usage will remain a critical issue requiring continued oversight and policy attention.
The Centre maintained that it is actively engaging with stakeholders to ensure that the expansion of digital infrastructure aligns with environmental sustainability goals.
Follow us
