India’s Digital Backbone Is Booming—But Is Gas Power Holding Back the Future?
India’s data centres are exploding in size and influence, but experts warn that choosing gas over renewables could threaten the future.
- Data centre capacity to soar from 1.4GW (2024) to 9GW (2030).
- India ranks #7 globally with 262 data centres—just behind France and Canada.
- Energy demand growth: 7% yearly, with data centres expected to use 3% of all electricity by 2030.
- $6.5 billion invested in the last decade; 2024 revenue hit $1.2 billion.
India’s transformation into a digital powerhouse is rewriting the rules of business, banking, and personal life. At the center of this revolution sit data centres—massive buildings packed with servers that now power everything from AI to e-commerce.
But there’s a hidden cost: energy. As artificial intelligence and digital services rapidly scale up, data centres are devouring electricity at a pace few anticipated. What was once measured in “server racks” is now an energy arms race.
Why Are Indian Data Centres Becoming Energy Guzzlers?
India’s digital push means more data, faster speeds, and—most critically—more power. Major hubs like Mumbai, Hyderabad, Delhi NCR, Bangalore, and Chennai are home to 186 of India’s 262 data centres. Each site can consume as much energy as 100,000 homes—often more than heavy industries like smelters.
With Internet use and smartphone adoption surging, the country’s grid is feeling the pressure. According to the International Energy Agency (IEA), data centre demand will reach unprecedented levels by 2030.
Is Gas Really the Answer to India’s Digital Energy Hunger?
Many have pitched natural gas as the “cleaner” alternative to coal. However, recent events reveal its pitfalls. Domestic production now barely meets half of India’s needs. The remainder must be imported—often at wildly fluctuating prices due to international tensions and market shocks.
In 2025, the government hiked the price cap for domestic gas to $6.75 per million BTU—a move that immediately impacted energy bills. As more gas comes from abroad, Indian firms face volatile spot pricing, undermining the supposed “stability” of gas.
Green Energy vs. Gas: What’s Cheaper and Smarter?
Renewable energy isn’t just cleaner—it’s quickly becoming the cheapest choice. As of this year, renewable tariffs for continuous, “firm” energy sit at ₹4.98–4.99, beating out the average gas tariff of ₹5.4. Battery storage costs are also tumbling.
Government grants, like the Viability Gap Funding (VGF) scheme, cover up to 30% of capital spending for standalone battery storage. In Q1 2025, India launched tenders for 6.1GW of storage—more than doubling all of last year.
Q: Are Data Centres Actually Switching to Clean Energy?
Absolutely. Globally, over half of all new data centres are at least partially powered by renewables. In Mumbai, the Yotta NM1—India’s largest—already sources half its energy from green power and aims for 70%. Battery-plus-solar setups and microgrids are gaining traction around major data clusters.
How Can Data Centres Lead India’s Green Revolution?
India plans an eye-watering 500GW of renewable energy capacity by 2030. Data centre clusters are perfectly positioned to anchor this growth:
– Install rooftop solar and battery energy storage.
– Create local microgrids that tap into wind and solar.
– Partner with clean energy producers for long-term supply deals.
Major policy incentives, international investments, and falling technology costs make these options more accessible each year.
What’s the Risk If India “Steps On the Gas”?
Shifting data centres to natural gas now could lock in costly, polluting infrastructure for decades—at the very moment cleaner, more stable options are taking off. Gas price volatility, supply insecurity, and looming climate regulations make renewables and storage the superior, future-proof choice.
For more analysis, see resources at the Institute for Energy Economics and Financial Analysis and India’s Ministry of New and Renewable Energy.
Embrace the Future—Go Renewable Now!
- ☑ Invest in battery-backed solar and wind systems for all new data centres
- ☑ Take advantage of government incentives like VGF for energy storage
- ☑ Collaborate with local and international green energy providers
- ☑ Lead the digital revolution with clean, reliable, and affordable power
The digital economy’s future depends on sustainable choices. Demand smarter power for your data centre—insist on renewables, not gas!