India Projects AI Data Center Power Demand to Hit 26.3 GW

The Ministry of Power informed Parliament that Artificial Intelligence data centers are projected to add 26.3 GW of additional electricity load by 2031-32. This figure represents a significant increase over a March 2026 projection of 13.56 GW. The Indian government plans to meet this rising demand primarily through renewable energy capacity.

To maintain grid stability and support this expansion, the National Electricity Plan outlines transmission system investments of approximately Rs 9,16,142 crore between 2022 and 2032. These efforts include the deployment of Battery Energy Storage Systems and Static Synchronous Compensators, alongside the addition of thermal power capacity to manage base loads.

Officials are currently discussing strategies to locate data centers near green energy sources and away from urban centers to prevent transmission congestion. This approach aims to mitigate risks associated with the variable and volatile power loads typical of hyperscale data centers, which can create sharp ramps in electricity demand.