From claims to proof: measuring sustainability in India’s data centres

For years, “sustainability” in the Indian data centre industry lived primarily in the realm of corporate social responsibility reports and marketing brochures. As India’s digital economy expanded, so did the promises of “green” facilities. But now we have reached a critical inflexion point. As data consumption surges, driven by AI, 5G, and a massive migration to the cloud, the environmental footprint of the infrastructure supporting this growth can no longer be masked by vague commitments.

True sustainability is an engineering discipline. It requires a move away from “intent” to “impact” — the verifiable reduction of resource consumption.

The conversations must shift from claims to proof. For Indian enterprises and global hyperscalers operating in the subcontinent, the era of “greenwashing” is ending. In its place, a new paradigm of radical transparency and measurable impact is emerging.

SUSTAINABILITY HAS TO BE MEASURABLE

“Green” is not an objective state but a measurable trajectory, and this is the fundamental challenge with green claims in the data centre industry. In the Indian context, where the grid remains heavily reliant on thermal power and water scarcity is a seasonal reality, a data centre cannot simply declare itself sustainable by planting trees or purchasing carbon offsets.

One of the most common forms of greenwashing is the conflation of “renewable intent” with “renewable impact.”

True sustainability is an engineering discipline. It requires a move away from “intent” to “impact” — the verifiable reduction of resource consumption. For a CEO or a CIO, the focus must shift towards a limited set of high-integrity indicators that reflect the physical reality of the facility. If a claim cannot be audited, benchmarked, or measured in real-time, it is likely greenwashing.

THE METRICS THAT MATTER

There are new metrics which must be measured and would play an increasingly important role as the industry develops.

Let’s start with energy efficiency, expressed as annualised power usage effectiveness (PUE) with a stated boundary and metering methodology. In India’s bifurcated climates—hot-humid (Mumbai, Chennai) and hot-dry (Hyderabad, NCR)—cooling challenges differ, and so does the temptation to cherry-pick cool-season results. Honest, weather-normalised PUE surfaces whether a facility has invested in airflow containment, economisation hours, and liquid-cooling readiness for AI loads, or is relying on climate luck.

Next is the carbon intensity of delivered electricity, measured in kgCO₂e per kWh, reported both location-based (what the grid actually emits) and market-based (after your procurement). Pair that with an hourly 24/7 carbon-free energy match. Annual renewable energy certificates can make a facility look “100% renewable” on paper while it still leans on fossil-heavy power during evening peaks. An hourly lens forces operational alignment with clean supply and rewards real strategies—storage, demand flexibility, and firm clean PPAs—that lower emissions when the electrons flow.

Third, water intensity and source risk. Direct water usage effectiveness (WUE in litres per kWh of IT load) is a start, but insufficient on its own. We should disclose indirect or embedded water from electricity generation, the source mix (potable municipal, borewell, surface water, or tertiary-treated), recycling rates, and contingency plans for drought. Given the water realities of our major hubs—groundwater stress in NCR, seasonal scarcity around Hyderabad and Chennai, and coastal humidity in Mumbai that limits free-cooling hours—using freshwater evaporatively to hit a low WUE may be the wrong trade-off. Non-potable sources and closed-loop designs must become the norm.

Fourth, embodied carbon per MW built. As the grid decarbonises over time, the emissions baked into concrete, steel, batteries, switchgear, and even server refresh cycles can dominate a site’s life-cycle footprint. Buyers should expect life-cycle assessments with Environmental Product Declarations where available, and transparent policies on refurbishment and reuse.

Finally, grid-friendliness. Data centres are programmable loads. Facilities that can shape or shift demand—through thermal storage, batteries, or scheduling of non-urgent compute—help integrate variable renewables, reduce curtailment, and earn cleaner electrons. In India’s rapidly evolving power system, flexibility is not a nice-to-have; it is part of credible decarbonization.

RENEWABLES, WATER, AND INDIA’S REALITY

One of the most common forms of greenwashing is the conflation of “renewable intent” with “renewable impact.” Many providers claim to be “100% renewable” by purchasing Renewable Energy Certificates (RECs). While RECs support the global transition, they do not necessarily change the electron mix entering a specific data centre in Mumbai or Chennai at 2:00 AM when the sun isn’t shining.

In India, “renewable impact” means moving toward power purchase agreements (PPAs) and round-the-clock (RTC) renewables. It involves investing in captive solar or wind farms and, increasingly, exploring battery energy storage systems (BESS) to bridge the intermittency gap. A credible provider must show a clear roadmap for how they are transitioning their actual hourly load to carbon-free sources.

Most Indian data centre hubs—Chennai, Mumbai, and Delhi-NCR—face varying degrees of water stress.

Furthermore, we must address the “water constraint.” Most Indian data centre hubs—Chennai, Mumbai, and Delhi-NCR—face varying degrees of water stress. A facility that achieves a low PUE by evaporating massive amounts of municipal water is not truly sustainable; it is merely trading a carbon problem for a water problem. Forward-looking providers are now adopting “zero liquid discharge” (ZLD) systems and air-cooled technologies that decouple compute growth from water consumption.

BUYER CHECKLIST FOR CREDIBLE GREEN CLAIMS

A diligent buyer can separate progress from narrative with a few disciplined asks. Demand annualised, site-level PUE with boundaries and 95th-percentile data, not just a flattering mean. Ask for both location-based and market-based emissions intensity and the hourly 24/7 carbon-free energy percentage, with the matching method and grid region disclosed. Probe additionality by naming PPA projects and commercial operation dates to show that your procurement is enabling new capacity, not just reallocating existing certificates. On water, insist on direct WUE, embedded water from electricity generation, source mix, recycling rates, and a drought contingency that does not fall back on stressed aquifers.

Require embodied-carbon transparency per MW, with EPDs and a reuse/refurbishment policy at refresh. Finally, look for third-party assurance and quarterly cadence. Red flags are easy to spot once you know them: snapshot PUEs during cool spells, “100% renewable” claims based purely on unbundled RECs, or “zero water” assertions that shift the burden off-site.

THE BOTTOM LINE

India’s digital growth does not have to trade off with climate or water security. If we anchor the conversation in a small, verifiable set of metrics—and insist on hourly carbon evidence, honest water accounting, and life-cycle transparency—we can build data centres that are green in practice, not just in prose. That is the standard our customers, our communities, and the next decade will demand.

Anshuman Magazine is Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.

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