From power-hungry to purpose-built: Why India’s DCs must grow smarter in AI era?d

Artificial Intelligence is advancing at an unprecedented pace, transforming industries, economies, and everyday lives across the globe. But, behind this technological revolution lies an urgent and often overlooked issue; the vast energy consumption required to power it. 

As AI becomes the cornerstone of modern innovation, the infrastructure that supports it, data centers, is consuming more and more resources, raising the question: Can the AI’s boom be sustained without compromising our planet?

Globally, data centers already account for around 1% to 2% of total electricity consumption. As AI, machine learning, and high-performance computing continue to expand, this figure is set to grow even further. 

Take OpenAI’s GPT-3, for example, which consumed nearly 1,300 megawatt-hours of electricity during its training. In this context, the focus on performance can no longer be the sole priority. Sustainability is now an imperative.

AI’s growing environmental footprint in India
India’s data center capacity is on a steep upward trajectory, fueled by rapid digitalization and the widespread adoption of AI. Each data center operates within a defined power limit. Improved efficiency is an imperative to supports sustainability goals while achieving higher processing capacity without raising power usage. It has become increasingly critical amid environmental concerns and tightening regulations. 

The country’s installed data center capacity is expected to grow from 960 megawatts today to 9.2 gigawatts by 2030, marking a ninefold increase. Although data centers currently account for less than 1% of the country’s electricity consumption, this proportion is projected to rise to 3% by 2030. 

This sharp growth in demand raises a critical question. How can India meet the growing need for AI-powered services without expanding its environmental footprint? 

India’s rare dual inflection point
India is uniquely positioned. Unlike mature markets locked into legacy infrastructure, we are building data centers at a time when both digital growth and renewable energy development are accelerating. This rare alignment offers an opportunity to embed sustainability from the beginning.

The Indian government’s ambitious target of achieving 500 gigawatts of non-fossil fuel capacity by 2030 complements the environmental goals of global technology companies investing in India’s digital infrastructure. This convergence of national policy and global demand provides India with an unmatched opportunity to lead the way in developing sustainable AI infrastructure.

Digital Twins -- Making data centers smarter
At the core of this transformation lies digital twin technology. By creating virtual replicas of physical systems, digital twins enable real-time simulation, analysis, and optimization of data center operations. 

Unlike traditional monitoring tools, digital twins act as engines of insight and foresight. They leverage computational fluid dynamics, high-performance computing, and AI to model airflow, optimize cooling systems, and predict energy consumption patterns. As a result, they can reduce energy use by up to 30%.

The integration of renewable energy is crucial for the sustainable growth of data centers. However, the intermittent nature of renewable sources like wind and solar introduces operational challenges. Digital twins are uniquely suited to navigate these challenges. 

They can simulate the impact of different renewable energy scenarios on data center operations, enabling operators to find the optimal balance between performance and sustainability. They also curb overprovisioning by modelling real workloads, identifying underused equipment, and scaling capacity more precisely, cutting both costs and emissions.

Notably, recent industry research shows that 81% of global IT and facility decision-makers are confident in their organization’s ability to use digital twins, and 72% consider them a key tool for reducing carbon emissions. The majority are already leveraging them for space optimization, energy forecasting, and AI deployment, proving that digital twins are not just aspirational but actionable. 

India must lead by design, not default
India now stands at the threshold of an extraordinary opportunity. Its data center ecosystem is still in its formative stages, which means it can design and build infrastructure that prioritizes sustainability and intelligence from the start. This is a rare chance to avoid the inefficiencies of legacy systems and set a new benchmark for sustainable digital growth.

But, this transformation can’t be driven by technology alone. It demands coordinated action from tech leaders, energy providers, policymakers, and regulators to build a unified framework that enables and scales sustainable innovation. The decisions we make today won’t just shape India’s digital future, they’ll define its environmental legacy for generations.

-- Jayashankar Narayanankutty, Group Director, Cadence Design Systems.