Power ministry plans grid for data centres as demand surges

New Delhi: The power ministry is actively engaging with stakeholders to evaluate their preparedness for electricity and related infrastructure for data centres, said people aware of the development. The deliberations come in the backdrop of the ministry's internal estimates projecting power demand from data centres at 26 GW by 2032 and 35.7 GW by 2040.

The power ministry, along with the Central Electricity Authority (CEA), is holding meetings with distribution utilities, transmission companies, and data centre developers to assess power supply requirements, transmission connectivity and infrastructure planning, the people said.

The ministry is supporting states in preparing infrastructure as more data centre projects are announced, one of the persons said. It is focusing on discussions around issues of grid and transmission for data centres. said an industry executive.


A latest report from KPMG said India's data centre market is witnessing rapid capacity expansion, driven by strong digital demand tailwinds and a surge in infrastructure investments.

An estimated $90 billion opportunity is expected to emerge by FY35 across the end-to-end data centre value chain, according to the report.

ET previously reported that government has initiated an exercise to map countrywide projected power demand from upcoming data centres.