As AI data-centre boom strains water security, Centre turns to high-tech cooling

Mumbai: With environmentalists flagging concerns over the water footprint of India’s rapidly expanding AI-driven data-centre sector, the Centre has said it is adopting advanced cooling technologies to curb consumption.

According to estimates cited by the NatConnect Foundation, data centres in India could consume up to 37.5 billion litres of water annually—equivalent to the yearly needs of 7–8 lakh people, or enough to supply a city like Mumbai for about a week. The calculation is based on the urban water norm of 135 litres per capita per day prescribed by the Central Public Health and Environmental Engineering Organisation.

Taking up the issue with the Prime Minister, NatConnect Foundation director B N Kumar warned that unchecked expansion of the data-centre industry could pose a serious threat to the country’s water security. He urged the government to integrate water stewardship into India’s fast-growing AI infrastructure.

Official data show that India’s data-centre capacity has surged from around 375 MW in 2020 to over 1,500 MW in 2025, driven by the rise of artificial intelligence and cloud computing. Activists, citing global benchmarks from institutions such as the International Energy Agency and the Lawrence Berkeley National Laboratory, estimate that a conventionally cooled 1 MW facility can consume nearly 25 million litres of water annually.

Highlighting India’s structural constraints, NatConnect noted that the country supports nearly 18 per cent of the global population with just about 4 per cent of its freshwater resources. With groundwater levels declining in several regions and agriculture heavily dependent on aquifers, the rising demand from data centres could exacerbate water stress, it cautioned.

Responding to the concerns, the Ministry of Jal Shakti said it has taken note of the suggestions and sought further inputs. In a communication signed by Under Secretary Shambhu Nath Gupta, the Ministry said data centres are increasingly deploying advanced solutions such as direct-to-chip liquid cooling, adiabatic cooling, immersion systems and high-density racks. These technologies help reduce both water and energy consumption while supporting high-performance computing.

In a press statement, Kumar said India has the opportunity to lead in building climate-resilient and resource-efficient digital infrastructure. He emphasised that liquid and immersion cooling, closed-loop systems and wastewater reuse can significantly cut dependence on freshwater compared with conventional methods.

At the same time, he stressed that the growth of AI and cloud infrastructure must align with sustainable water management, particularly in water-stressed regions. In his representation, Kumar called for incentives for near-zero potable water operations, mandatory disclosure of water usage by data centres, prioritisation of treated wastewater for cooling, support for research into low-water technologies, and basin-level hydrological assessments for large data-centre clusters.

The Ministry also underscored ongoing measures such as rainwater harvesting, groundwater recharge, wastewater reuse and digital groundwater monitoring as part of broader efforts to ensure sustainable resource management alongside the growth of digital infrastructure.