Business News | Data Centres' Share in India's Electricity Use May Rise to 2% in Next Decade: NITI Aayog Member
Get latest articles and stories on Business at LatestLY. Data centres could account for up to 2 per cent of India's total electricity consumption over the next decade, compared with around 0.5 per cent currently, as the country expands its digital infrastructure, NITI Aayog Member Abhay Karandikar said on Wednesday.
New Delhi [India], October 14 (ANI): Data centres could account for up to 2 per cent of India's total electricity consumption over the next decade, compared with around 0.5 per cent currently, as the country expands its digital infrastructure, NITI Aayog Member Abhay Karandikar said on Wednesday.
Speaking to ANI on the sidelines of a NITI Aayog event to release the Data Centre Set-Up Evaluation Framework Report, Karandikar said electricity demand would increase with the expansion of data centres, but the country has a roadmap to meet the growing requirement.
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"Currently, it is about 0.5 per cent of our total electricity consumption. In other countries like the US and Europe, it is much more than that, in the order of 2 to 5 per cent of the total electricity consumption," he said.
"In the coming years, as the data centres expand in the country, obviously electricity consumption will increase and may reach up to 1 to 2 per cent of the total electricity demand in the coming decade or so," he added.
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The projected increase comes as India expands its digital infrastructure, raising concerns about the availability of electricity and water for data centres, particularly as demand for artificial intelligence and other digital services grows.
Karandikar said the government was already taking steps to increase energy supply through renewable sources and potentially nuclear power in the coming years.
"As the country progresses, electricity demand will increase, but we have a roadmap to meet that demand," he said.
On the newly released evaluation framework, he said it provides guiding principles and a methodology for assessing data centre proposals, including their electricity and water requirements.
He explained that water is primarily needed to cool servers, but newer technologies could help reduce consumption.
"Advancements are taking place in the technologies also," he said, adding that developing efficient cooling systems could create opportunities for Indian technology companies.
Karandikar also said that while major data centres are currently concentrated in Mumbai, Chennai and the Delhi-NCR region, future expansion could extend to cities such as Lucknow, Bengaluru, Hyderabad and Pune as states make land, electricity and water available.
Separately, addressing preparations for sixth-generation (6G) telecommunications, he said some spectrum bands had already been identified, while further decisions at the upcoming World Radiocommunication Conference could help identify additional bands, particularly around 6 GHz.
He said India had around four years to plan for the spectrum requirements expected by 2030, including possible coexistence with existing satellite services.
On the entry of foreign satellite communication companies into India, Karandikar said the issue involved licensing conditions and a broader strategy to expand broadband connectivity while protecting national interests.
He also stressed that developing indigenous technologies did not mean excluding international companies from the Indian market.
"We would like to work and partner with global companies, but at the same time we would like to protect the national interests," he said.
He added that India already has extensive mobile network coverage, with satellite communications and other technologies expected to complement existing networks, particularly in underserved regions. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)