India Set to Create a New Record with 9 GW Data Centre Capacity by 2030, but Where Will the Power Come From?

India is on track to set a new global benchmark in digital infrastructure. By 2030, the country’s data centre capacity is expected to surge to nearly 9 gigawatts (GW)—a massive jump from about 1.4 GW last year. If achieved, this expansion will firmly establish India as one of the fastest-growing data centre markets in the world. However, this rapid growth raises a critical question: where will the enormous amount of electricity required to power these data centres come from?

Rapid Growth in Data Centre Capacity

India’s data centre ecosystem is expanding at an unprecedented pace, driven by cloud computing, artificial intelligence, digital payments, 5G services, and data localisation norms. Until now, data centres accounted for less than 1% of India’s total electricity consumption. By 2030, their share is expected to rise to around 3%, significantly increasing pressure on the country’s power infrastructure.

Data Centres: Power-Hungry by Design

Data centres operate 24×7 and require uninterrupted electricity to run servers, cooling systems, and backup infrastructure. Earlier, hydroelectric and thermal power sources were sufficient to meet demand. But with capacity multiplying several times over, these traditional sources alone are no longer adequate.

To bridge this gap, India is increasingly looking towards solar and wind energy, supported by battery energy storage systems to ensure stable and continuous power supply even when renewable generation fluctuates.

India’s Renewable Energy Vision for 2030

According to industry reports, including Trade Brains, the Indian government has set an ambitious target of achieving 500 GW of renewable energy capacity by 2030. A major portion of this will come from solar power, estimated at around 280 GW, while wind energy is also gaining strong momentum.

As per the Indian Wind Turbine Manufacturers Association, India is steadily moving towards a 100 GW wind energy target by 2030. Currently, the country has already installed over 50 GW of wind power capacity, with manufacturing capability of more than 18 GW of turbines and components annually. Meeting these targets could ensure a reliable and affordable power supply for data centres.

Why Renewable Energy Is Key

Renewable energy is derived from natural sources such as sunlight and wind, which are continuously replenished and do not run out. Unlike coal, oil, and gas—finite resources that cause environmental damage—renewables are clean, sustainable, and help reduce pollution. This makes them particularly well-suited for energy-intensive industries like data centres, which are under growing pressure to reduce carbon footprints.

Smart Power Planning to Cut Costs

Electricity accounts for 30–40% of a data centre’s operating costs. Currently, grid power in India costs around ₹7–10 per unit, with prices often fluctuating. However, by investing in captive renewable energy plants or signing long-term power purchase agreements (PPAs), data centre operators can lock in electricity costs at ₹3–4 per unit.

To further improve reliability, companies are deploying hybrid energy systems that combine solar, wind, and battery storage. This approach minimizes power disruptions, especially in states with weaker grid infrastructure, while keeping costs predictable and improving profitability.

The Road Ahead

As India moves rapidly towards becoming a global digital powerhouse, the success of its data centre expansion will depend heavily on smart energy planning. Renewable energy, supported by storage and hybrid systems, is likely to play a decisive role in ensuring that India’s data-driven future is not only powerful—but also sustainable.