India Projects AI Data Center Load to Reach 26.3 GW

India is experiencing a rapid expansion of its data center infrastructure, with operational capacity projected to grow from 2.2 GW in 2025 to 12 GW by 2030. According to a report by Wood Mackenzie, AI-dedicated capacity alone is expected to expand nearly 24-fold to reach 6,546 MW by 2030, driven by enterprise digitalization and hyperscale cloud providers. The domestic AI market is projected to reach Rs 11.7 trillion by 2032.

To support this growth, the Ministry of Power informed Parliament that AI data centers will add 26.3 GW of additional electricity load by 2031-32, nearly doubling a projection made in March 2026. The government intends to meet this demand primarily through renewable energy. To maintain grid stability against the volatile and spiky power loads characteristic of hyperscale centers, the National Electricity Plan envisions transmission system investments of approximately Rs 9,16,142 crore between 2022 and 2032.

These efforts include grid modernization via Battery Energy Storage Systems and adding thermal power capacity for base loads. Officials are currently discussing locating data centers near green energy sources and away from urban hubs to mitigate transmission congestion. While Maharashtra and Tamil Nadu currently hold 65 percent of the installed IT load, future investments are expected to shift toward Andhra Pradesh, Telangana, Uttar Pradesh, and Karnataka.