India's data centre capacity has grown more than fourfold in six years, reaching approximately 1,575 MW in 2026 from 375 MW in 2020. On August 5, Minister of State for Electronics and Information Technology Jitin Prasada informed Parliament that the government is tackling the environmental impact of expanding AI infrastructure through renewable energy initiatives, a new nuclear power law, and technical standards, responding to concerns about electricity, water, and resource use in AI data centres.
The government’s response came after MP Kanwar Singh Tanwar raised questions about the sustainability of AI infrastructure, including incentives and technical assistance for renewable energy, advanced cooling technologies, water recycling, and resource-efficient data centre infrastructure. Prasada detailed measures such as standards and guidelines to monitor electricity consumption, water usage, carbon emissions, and overall environmental performance of AI data centres. Coordination among ministries aims to conserve local water resources and strengthen energy security while supporting AI growth.
The rapid expansion of AI data centres in India has raised concerns about environmental sustainability, given the high demand for electricity and water. The government’s approach includes adopting the new nuclear power law and Bureau of Indian Standards (BIS) technical standards to ensure resource efficiency. This aligns with global trends where countries are implementing stricter regulations and incentives to balance AI infrastructure growth with environmental impact mitigation.
The Ministry of Electronics and Information Technology’s written reply to the Lok Sabha on August 5, 2026, marks a concrete step in formalizing policies to manage AI data centre sustainability. The data centre capacity increase from 375 MW in 2020 to 1,575 MW in 2026 underscores the urgency of these measures, as India continues to expand its AI infrastructure while addressing environmental challenges.