Context
The Ministry of Power has projected that AI-driven data centres in India could require an additional 26.3 GW of electricity by 2031–32, nearly double its earlier estimate. The government plans to meet much of this demand through renewable energy while strengthening transmission infrastructure and grid reliability.
Explanation
- A data centre is a facility that houses servers, storage systems and networking equipment to process, store and transmit digital data for cloud computing, AI and internet services.
- Artificial Intelligence (AI) workloads require High-Performance Computing (HPC), including Graphics Processing Units (GPUs) and specialized AI chips, making AI data centres highly electricity-intensive.
- Rapid growth in cloud computing, digital payments, 5G, enterprise digitalisation and Generative AI is driving expansion of data centre infrastructure in India.
- Data centres require uninterrupted power, efficient cooling systems, robust transmission networks and low-latency connectivity, making location and grid stability critical.
- India is promoting renewable energy, green data centres, energy-efficient cooling and grid modernization to support digital infrastructure while reducing carbon emissions and ensuring energy security.
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