Efforts to curb water use in data centers include strict norms and advances in cooling technologies, potentially cutting water consumption by around 70% in some implementations.

Union Minister Ashwini Vaishnaw says India will see more memory chip manufacturing investment as new entrants enter the market and existing players expand to alleviate global supply-demand gaps.

Global memory chip shortages and rising demand, particularly for high-bandwidth memory for AI data centers, are driving expansions, including Micron’s recent plant activity.

Industry forecasts anticipate rising energy and water use for data centers, underscoring the urgency of efficient cooling and sustainable practices amid growth.

The India Semicon Mission (ISM) aims to build a robust domestic semiconductor sector, with ISM 1.0 focusing on talent and infrastructure and ISM 2.0 prioritizing chip design and manufacturing equipment development locally.

Plans to add more fabs, ATMP units, and indigenous chemical and gas production, alongside stronger talent development in semiconductor tech.

Vaishnaw notes progress under Modi’s administration in attracting chip makers and advancing ISM goals, including stronger design emphasis in ISM 2.0 and ongoing talent development.

Vaishnaw highlights three core enablers for data center growth: a strong grid, abundant renewable energy, and a deep pool of local talent.

Policy emphasis on reliable power and clean energy is positioning India as an attractive hub for hyper-scale data centers.

Environmental considerations are being integrated into data center design, with innovations in power efficiency and water cooling that can reduce water usage by up to about 70%.

India’s data center surge is driven by a large local talent pool, a modern, robust grid with extensive transmission lines, and a high share of renewable energy, all drawing hyperscalers to set up in the country.