Gearing Up for India’s Energy Transition: From Megawatts to Net Zero

Dr. Sunit Tyagi, Founder and Managing Director, InSolare Energy Limited

India is entering a phase of unprecedented data center expansion. Over the next decade, capacity will rise sharply, demanding a firm and stable power supply. This surge will require faster grid expansion, higher-quality infrastructure, and large-scale renewable integration. For this critical digital backbone to grow sustainably, India must adopt round-the-clock renewable power that combines solar, wind and energy storage, while also driving innovation in energy-efficient data center design. 

Global Landscape vs India: A Massive Opportunity Gap 

The USA dominates the global data center landscape with 53.7 GW of capacity, which is half the world’s total and 30× India’s current 1.6 GW. Although India is far behind global leaders such as the US, China, and Europe, this gap represents one of the most significant growth opportunities worldwide.

AI adoption across industries, including 25% in software engineering and 20% in insurance and marketing, is accelerating compute demand, pushing AI data centers to a CAGR >30%. India’s computing availability is 1.1 Watts per person compared to 158 Watts per person in the USA, while China is 13 times ahead. At the same time, India’s monthly data usage is expected to rise from 27.5 GB (2024) to 90 GB  (2035), signalling extraordinary growth in digital services, cloud adoption, AI applications, and telecom consumption. 

India’s Datacenter Growth Trajectory: From 1.6 GW to 12 GW 

India’s data center ecosystem has reached an important turning point. Capacity is expected to grow from  1.6 GW in 2024 to 8 GW by 2030 and further to 12 GW by 2035. This represents a fivefold expansion within a decade and places India among the fastest-growing data center markets in the world.

A data center load of 1 GW operating at 50% utilisation consumes about 4.4 TWh of electricity each year, and India’s existing 1.6 GW already requires close to 7 TWh annually. Supporting future growth while maintaining carbon neutrality will require approximately 38 GW of renewable energy capacity by  2035, including 24.5 GW of solar and 12.3 GW of wind.

Over the next few years, data center energy consumption is projected to rise more quickly than the country’s overall electricity demand, and by 2030, data centers may account for nearly 1.5 percent of India’s total energy requirement. 

The Strategic Imperative: Carbon Neutral and High Reliability 

Meeting this rising demand calls for a fundamental shift toward reliable, round-the-clock clean power.  Large-scale renewable integration, hybrid systems that combine solar and wind, storage-backed clean energy, and stronger grid networks will all play a crucial role. Efficient energy storage, long-term security of supply, and supportive policy frameworks must form the foundation of this growth. As data center workloads become more power-intensive and AI adoption accelerates, factors such as  energy efficiency, availability, and grid stability will determine India’s ability to scale sustainably and maintain its competitive edge. 

India’s Energy Transition: A Unique Opportunity for Green Compute Growth 

Although India is one of the world’s largest digital economies, it operates only a small share of global compute capacity. Its compute availability is roughly one one-hundred-and-fiftieth that of the United States, which highlights the tremendous scope for hyperscale expansion. India’s data center capacity is expected to grow significantly by 2030, driven by rapid AI adoption and rising digital consumption. The global surge in AI is intensifying infrastructure needs and pushing data center growth rates well beyond 30% annually. 

Reaching these levels sustainably will require widespread adoption of solar, wind, hybrid renewable systems, and advanced storage technologies. By 2035, India’s digital ecosystem is projected to need close to 38 GW of green energy to support data center operations. As energy use in data centers increases more quickly than national power demand, long-term sustainability and energy security must become central to all future capacity planning. 

Closing: India’s Journey From Megawatts to Compute Watts 

India is uniquely placed to transform from a digital-first nation into a global center for green, AI-ready compute infrastructure. The country’s progress from traditional megawatt-scale growth to a compute-driven future must be guided by innovation, resilience, and a strong commitment to achieving net zero. 

This moment represents far more than an upgrade in power systems; it is an opportunity to shape how the next generation of digital infrastructure will be built across the world.