AI data centres' power load seen 26.3 GW by 2031-32, Pg13

Key Highlights:

• The Ministry of Power informed Parliament that Artificial Intelligence (AI) data centers are projected to add an additional load of 26.3 gigawatts (GW) by 2031-32.
• This new projection is nearly double the earlier estimate of 13.56 GW for the same period.
• The increased power demand is expected to be primarily met by renewable energy capacity.
• India's data center capacity grew from 375 megawatts (MW) in 2020 to approximately 1.5 GW by 2025.

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Detailed Insights:

• The revised projection is based on proposals received from various states for setting up new data centers.
• Discussions are underway with stakeholders like state transmission and distribution utilities regarding reliable power supply and grid balancing.
• The Ministry of Power is considering policy-level changes, including locating data centers away from urban centers to mitigate transmission congestion.
• There is also a proposal to establish data centers near green energy sources to optimize power supply and reduce transmission losses.
• A report by Wood Mackenzie forecasts India's operational data center capacity to reach 12 GW by 2030, with AI-dedicated capacity expanding to 6,546 MW.
• India's digital economy, valued at INR 32 trillion in 2025, and a projected INR 11.7 trillion domestic AI market by 2032, are driving this demand.
• Data center electricity demand is predicted to increase 20-fold by 2040 from 10 TWh in 2025, potentially accounting for 7% of the total electricity demand.

Key Concepts Involved:

• Data Centre: A dedicated facility housing computer systems and associated components for data storage, processing, and networking.
• Grid Balancing: The process of maintaining a stable and reliable electricity supply by matching generation with demand in real-time.
• Transmission Congestion: A condition where the flow of electricity through transmission lines is limited due to capacity constraints, leading to inefficiencies.
• Renewable Energy Capacity: The maximum potential power output that can be generated from renewable sources like solar, wind, and hydro.