India’s fast-growing digital economy is entering a new phase, powered by artificial intelligence (AI), cloud computing, and large-scale data infrastructure. However, alongside technological progress, a serious environmental concern is emerging the massive water consumption required to run modern data centers.
As India’s data center capacity is projected to reach nearly 6.5 gigawatts (GW) by 2030, experts, industry leaders, and communities are beginning to question whether the country’s water resources can sustain this rapid expansion. Cooling servers an essential process for keeping digital infrastructure operational requires enormous volumes of water, raising alarms about long-term sustainability.
The debate has intensified after industry voices and global examples highlighted how unchecked growth could impact local communities and water availability.
Why Data Centers Require Huge Water Volumes for Cooling Servers
Data centers are the backbone of today’s internet-driven world. Every online search, video stream, AI request, or digital payment relies on servers running continuously inside massive facilities. These servers generate intense heat, and without effective cooling systems, they can malfunction or shut down.
To manage this heat, many data centers use evaporative cooling systems, which depend heavily on water. According to industry estimates referenced in discussions around the issue, cooling operations can consume between 45,000 and 70,000 liters of water daily per megawatt (MW) of capacity.
When scaled across large facilities operating hundreds of megawatts, the numbers become staggering. With India planning multiple hyperscale data centers to support AI growth, the total water demand could rise dramatically in the coming years.
Experts warn that while electricity consumption of data centers often receives attention, water usage remains a less understood but equally critical environmental factor.
India’s Data Center Boom Driven by AI, Cloud Computing, and Global Investments
India has become one of the fastest-growing data center markets in the world. Rising internet penetration, digital payments, streaming services, and AI adoption are pushing companies to build large server hubs across the country.
Major global technology investments are accelerating this expansion. One prominent example frequently discussed is Google’s proposed $15 billion data center hub in Visakhapatnam (Vizag), which reflects how international tech giants see India as a key digital infrastructure destination.
Government policies promoting digital transformation, data localization requirements, and growing startup ecosystems have also encouraged infrastructure development.
However, environmental planners say the speed of growth requires balanced regulation to ensure that infrastructure expansion does not strain natural resources, especially water.
Global Warning Signs: Meta Facility in Georgia Highlights Community Water Issues
Concerns about water usage are not limited to India. International experiences have already shown how large data center construction projects can affect nearby communities.
Residents living near a Meta-operated facility in Georgia, United States, reported issues such as cloudy tap water and reduced water pressure during construction phases. While the company attributed the situation to temporary construction-related work, the incident sparked broader discussions about how large infrastructure projects can impact local water systems.
Environmental analysts say such cases serve as cautionary examples for rapidly developing markets like India, where urban infrastructure and water supply systems are already under pressure in several regions.
Zoho CEO Sridhar Vembu Warns of Community Water Shortages from Unchecked Data Center Growth
The conversation gained further momentum after Zoho CEO Sridhar Vembu publicly raised concerns about the environmental cost of uncontrolled data center expansion.
He warned that if growth continues without proper planning, local communities could face water shortages. His remarks highlighted the need for policymakers and companies to carefully assess where and how new facilities are built.
According to Vembu and other industry observers, sustainable development must become a priority before large-scale infrastructure reaches irreversible levels.
His comments sparked debate across technology and environmental circles, emphasizing that digital progress must not come at the expense of basic resources like water.
How Water Recycling, Treated Wastewater, and Desalination Offer Solutions
Despite the concerns, experts believe solutions already exist to reduce the environmental impact of data centers.
1. Water Recycling Systems
Modern facilities are increasingly adopting closed-loop cooling systems that recycle water instead of continuously consuming fresh supplies. This significantly reduces overall water demand.
2. Use of Treated Wastewater
Instead of using drinking-quality freshwater, some companies are turning to treated wastewater from municipal plants. This approach protects potable water resources while maintaining operational efficiency.
3. Desalination Technology
In coastal regions, desalination plants can convert seawater into usable cooling water, lowering dependence on groundwater and local reservoirs.
4. Advanced Cooling Technologies
New cooling innovations, including liquid immersion cooling and air-based systems, are being explored to minimize water evaporation altogether.
Industry experts argue that adopting such technologies early could help India avoid future resource conflicts.
Balancing Digital Growth and Environmental Sustainability in India
India’s digital transformation is essential for economic growth, innovation, and global competitiveness. Data centers enable AI research, e-commerce, fintech services, and smart governance initiatives that power modern society.
However, sustainability experts stress that infrastructure planning must consider regional water availability. Cities already facing water stress may struggle if large facilities draw heavily from local supplies.
Urban planners suggest several policy measures:
- Mandatory water impact assessments before project approval
- Incentives for water-efficient cooling technologies
- Greater transparency in reporting water usage
- Integration of renewable energy and sustainable resource management
Such measures could help ensure that technological advancement does not create unintended environmental challenges.
Why India’s Data Center Water Debate Matters for the Future of AI
Artificial intelligence is expected to drive the next phase of global economic growth, and data centers are central to this transformation. But AI systems require enormous computing power, which indirectly increases both electricity and water consumption.
As India positions itself as a global AI hub, the country faces a critical choice: expand rapidly or expand responsibly.
The current debate around water usage is not about slowing innovation but about making growth sustainable. Experts believe that early awareness gives India an opportunity to design smarter infrastructure compared to markets that addressed environmental impacts only after problems emerged.
A Turning Point for India’s Digital Infrastructure Strategy
The rise of data centers marks a defining moment in India’s technological journey. With capacity expected to reach 6.5 GW by 2030, the country stands at the intersection of digital progress and environmental responsibility.
Massive water consumption linked to cooling servers has sparked necessary conversations among industry leaders, policymakers, and citizens. Global examples, expert warnings, and emerging technologies all point toward one conclusion sustainability must become part of the data center growth model.
If India successfully adopts water recycling, treated wastewater usage, and advanced cooling solutions, it can continue its AI-driven expansion while protecting vital natural resources.
The challenge ahead is clear: building the digital future without draining the resources that communities depend on today.
