India’s rapidly expanding AI and cloud computing sector could consume nearly 37.5 billion litres of water annually, environmentalists warned, prompting the central government to outline measures the industry is taking to reduce its water footprint.
India’s fast-growing data center industry is facing fresh scrutiny over water consumption as capacity expands to support AI and cloud demand. The Ministry of Electronics and Information Technology said data center capacity in the country has risen from 375 MW in 2020 to more than 1,500 MW by 2025.
The government said new approaches are improving cooling systems, enhancing water efficiency, and reducing overall energy consumption. To minimise water usage, the industry adopts advanced cooling technologies such as direct-to-chip liquid cooling, adiabatic cooling and immersion cooling. Industry also deploys high density racks to efficiently support high‑performance computing & Artificial Intelligence workloads for further reduction of power and water consumption. It added that data centers in India are spread across the country and that guidelines have been issued to regulate groundwater extraction.
The issue gained attention after NatConnect Foundation raised concerns in a letter to the Prime Minister’s Office, warning that the industry’s water needs could create a broader strain on national water security. The group said the estimated consumption is equivalent to the annual water needs of 7 to 8 lakh people, or enough to supply Mumbai for about a week.
The concern comes as India prepares for a much larger buildout. Deloitte has projected that the country’s data center capacity could reach 8 to 10 GW by 2030, up from about 1.5 GW in 2025.
Cities such as Bengaluru, Hyderabad, Chennai and Mumbai are already under water stress, adding pressure to an infrastructure push that is becoming central to India’s AI ambitions.
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