The AI data centre boom strains water security in India as rapid growth in artificial intelligence and cloud computing increases demand for water. Data centres require large amounts of water to cool powerful servers that run AI systems. Environmental experts warn that this rising demand could affect the country’s limited freshwater resources.
According to estimates by the NatConnect Foundation, India’s data centres may consume around 37.5 billion litres of water every year. This amount equals the yearly water needs of nearly 7–8 lakh people. The AI data centre boom strains water security especially in cities where water shortages already occur.
India’s data centre capacity has grown rapidly from about 375 MW in 2020 to over 1,500 MW by 2025, driven by digital services and AI expansion. A conventionally cooled 1-MW facility can use nearly 25 million litres of water annually.
To tackle this challenge, the government is encouraging advanced cooling technologies. These include direct-to-chip liquid cooling, immersion cooling, and adiabatic cooling systems that reduce both water and energy use. Experts also suggest rainwater harvesting, wastewater reuse, and closed-loop cooling systems to ensure sustainable digital infrastructure.
