India faces 45 TWh energy gap by 2030 to fuel data center boom

Up to 50 million sq ft of space is also needed to support the growth.

India needs to have 40 to 45 terawatt hours (TWh) of incremental power by 2030 to support its growing demand for artificial intelligence (AI) infrastructure.

According to Deloitte India’s latest report “Attracting AI Data Centre Infrastructure Investment in India,” this rising demand also requires an additional 45 million square feet (sq.ft.) to 50 million sq.ft. of real estate space.

“A greater focus on building high-performance compute infrastructure, scalable power and cooling systems and efficient networking infrastructure, with a reconsideration of policy framework, can make India a hotspot for AI-powered data centre development in the coming years,” said Deloitte India partner Neha Aggarwal.

Specifically on power, the report said the rapid expansion of data centres intensifies pressure on India’s power infrastructure, creating an urgent need for enhanced transmission capabilities and grid stability.

More investments should be made to fuel generation capacity, improve infrastructure, and better integrate renewable energy sources. 

“Building a supportive policy framework for dedicated power supply infrastructure and improving renewable energy banking policies and regulations across states will be critical to creating sustainable data centres,” Deloitte said.