Challenges of Data Centres in India

Syllabus: Conservation, environmental pollution and degradation, environmental impact assessment

Context and Concept

  • Data is increasingly treated as the new oil in the global digital economy.
  • India risks becoming a destination for “data dumping” through poorly planned data centres.
  • Data dumping refers to locating resource-intensive, environmentally harmful facilities in weakly regulated jurisdictions.

Good versus Bad Data Centres

  • Data centres can benefit the economy if efficiently designed, well located, and properly regulated.
  • A good data centre requires reliable power supply, grid upgrades paid by developers, and high server utilisation.
  • It must include efficient cooling, such as airflow management, higher inlet temperatures, ambient or liquid cooling.
  • Dependence on potable water and backup power should be minimised through recycled water and clean alternatives.
  • Continuous measurement and monitoring of energy, water, and cooling parameters are essential.
  • A bad data centre is one located in unsuitable areas or using outdated, water-intensive or inefficient cooling systems.

Global Resistance and Lessons

  • In the United States, communities increasingly resist data centres due to water, power, and land concerns.
  • In Chile, Google was forced to change cooling technology after environmental court scrutiny.
  • In North Carolina and Minnesota, projects were cancelled or delayed due to secrecy and environmental fears.

Why India Faces High Risk

  • India is actively courting data centres through land, power incentives, and fast-track clearances.
  • Forecasts project data-centre capacity to rise from 1.8 GW by 2028 to over 4.5 GW by 2030.
  • Many Indian cities and river basins are already highly water-stressed.
  • Large clustered loads strain the electricity grid, requiring costly infrastructure upgrades.
  • The CAG, Supreme Court, and NGT have flagged gaps in environmental clearance and monitoring systems.

Safeguards and Watchpoints

  • Data centres need grid capacity, fibre networks, and legal land titles, preventing unchecked siting.
  • India has judicial and tribunal mechanisms that can deter environmental violations.
  • Civil society organisations can hold authorities accountable through scrutiny and public pressure.
  • Warning signs include excessive subsidies, weak zoning, opaque contracts, and unclear cost-sharing rules.
  • Each data centre must declare water budgets, cooling methods, peak power loads, and audit disclosures.

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