The government is investigating whether it is possible to supply major data center parks with dedicated, continuous electricity, either by installing small nuclear plants nearby or by obtaining direct links from power suppliers, officials told the media.
According to a senior government official, as additional data centers with AI servers and GPUs are established throughout India, there will be a greater demand for continuous power to be provided by a different power source.
“That, in turn, means that both the quality of power being supplied and the uninterrupted supply will have to be maintained at the highest standards. With AI servers and now GPUs coming into the picture, the demand will be a lot higher,” the official said.
Allowing these data center parks to establish independent power grids is one idea, according to another source. This would enable them to purchase electricity from the power producer or another state with excess power rather than the state where the infrastructure is located.
To investigate the viability of this alternative, the ministry of electronics and information technology had contacted the ministry of power.
“We are studying all the options and the best possible way ahead,” one of the officials quoted above said. “Whether an option will be feasible or not—cost-wise and infrastructure-wise—and ensuring minimal power loss will be a part of our study.”
With an expenditure of up to Rs 55,000 crore, the operating capacity of Indian data centers is anticipated to more than quadruple from 950 MW in FY24 to 2,000-2,100 MW by 2026-27.
The majority of this expenditure will go toward satisfying the need for hyperscaler-backed colocation services. According to a forecast released earlier this month by the consulting firm ICRA, these services will account for up to 85% of the data centers’ income over the next three years.
“The low data tariff plans, access to affordable smartphones, adoption of new technologies, and growing user base of social media, e-commerce, gaming, and OTT platforms are some of the key triggers for data explosion,” Anupama Reddy, vice president of corporate ratings at ICRA, said. “Also, artificial intelligence (AI)-led demand, which is expected to increase multi-fold in the next 3-5 years, presents significant opportunities,” she said.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
