India's data centre capacity is projected to increase dramatically from under 2 GW to between 24 and 26 GW, but this surge will have a limited effect on the country's total power demand, according to Central Electricity Authority Chairperson Ghanshyam Prasad. Meanwhile, renewable energy capacity targets aim for 800 GW by 2035-36.
- Data centre capacity to soar from under 2 GW to 24-26 GW
- Limited impact on overall electricity demand expected
- Renewable energy target set at 800 GW by 2035-36
What happened
Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), stated that India's data centre capacity could grow substantially from less than 2 GW currently to a range of 24 to 26 GW in the coming years. This anticipated increase has already been factored into the country's future power demand projections, allowing the power sector to expand generation capacity accordingly.
Prasad emphasized the importance of maintaining adequate generation capacity so that power supply always meets demand, ensuring consumers do not face shortages. The CEA is actively planning resource development to accommodate this growth without risking capacity constraints.
Why it matters
As digital services and cloud computing demand rise, data centres require more electricity, potentially stressing power systems. However, India’s power infrastructure is preparing for this increase proactively. The expected data centre load is projected to remain a relatively small percentage of the total national electricity demand, mitigating concerns about major disruptions or shortages.
In addition to managing data centre growth, India is aggressively expanding its renewable energy capacity, which recently surpassed 300 GW and aims to hit around 500 GW by 2030 and 800 GW by 2035-36. This will help balance rising power needs sustainably, supporting India’s climate and development goals.
What to watch next
India’s progress on deploying large-scale renewable capacity and energy storage solutions will be critical to ensuring reliable power supply as energy consumption patterns evolve. The CEA Chairperson highlighted advancements in energy storage, predicting it will scale up rapidly in the near future, helping to stabilize the grid and integrate more renewables.
Furthermore, the adoption of smart meters across the power network is gaining momentum, aimed at improving real-time monitoring and management of electricity consumption and generation. This digitalization effort will support more efficient grid operations and better visibility, particularly as rooftop solar and distributed energy resources grow in importance.