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Article

2 Sep 2026

Author:
The Hindu

India: Data center boom threatens water, power grid and climate

Global tech giants such as Google, Meta, Amazon, and Microsoft have committed billions to build data centers in India, driving nearly $200 billion in investment over the coming decade. However, the rapid expansion of data centers has raised concerns about the strain on the country's already stressed power grid, water resources, and climate. Data centers are clustering in India's most water-stressed regions, and none of the policies require public disclosure of daily water consumption or mandate that water sourcing must not compete with agriculture or municipal supply. India's power grid is already straining under record demand, and transmission constraints are becoming a critical bottleneck. Data centers also generate heat, making the places around them hotter and creating a feedback loop that increases cooling demand, raises electricity consumption, and contributes to climate change. The data center policies of various states offer generous incentives but impose virtually no conditions, and none of the major state policies require a grid impact assessment before commissioning, mandatory renewable energy sourcing, or thermal load assessment for surrounding communities.