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Power Ministry Prepares Roadmap to Support AI-Driven Data Centre Growth with Reliable and Green Electricity

The Ministry of Power has initiated consultations with data centre developers, state transmission utilities, electricity distribution companies (DISCOMs) and other stakeholders to formulate a comprehensive roadmap for meeting the rapidly growing electricity demand from India's expanding data centre industry. The initiative comes as artificial intelligence (AI), cloud computing and digital services are expected to drive an unprecedented surge in power consumption over the next decade, making reliable energy infrastructure a critical requirement for future investments.

According to officials, the discussions are focused on ensuring reliable power supply, dual-grid connectivity, adequate transmission capacity, grid stability, green power availability and energy storage integration. The proposed roadmap aims to align upcoming data centre investments with timely expansion of generation, transmission and distribution infrastructure so that electricity networks are prepared well before large AI-driven facilities become operational.

India's data centre sector is projected to witness exponential growth, with installed capacity expected to increase from approximately 1.6 GW at present to around 26 GW by 2031-32, and further to 37 GW by 2040. The rapid adoption of generative AI, high-performance computing, cloud platforms and digital transformation across industries is significantly increasing the need for energy-intensive computing infrastructure. As a result, ensuring uninterrupted and high-quality electricity supply is becoming a key policy priority for both the government and industry.

A major area of discussion is the provision of dual-grid connectivity, which enables data centres to receive electricity through two independent grid connections. This redundancy improves operational resilience by allowing facilities to continue functioning during maintenance activities, transmission outages or unexpected network disruptions. Since data centres host mission-critical digital infrastructure, uninterrupted power availability is essential to prevent downtime and safeguard business continuity.

The Ministry is also evaluating the readiness of India's transmission network to accommodate large concentrated electricity loads. Regions such as southern and western India, which are witnessing significant investments in data centres due to their digital ecosystem, renewable energy availability and favourable infrastructure, are being assessed for potential transmission bottlenecks. Additional substations, high-capacity transmission lines and grid connectivity may be required to support the anticipated demand without compromising network reliability.

Equally important is the preparedness of state distribution companies (DISCOMs), which provide the final electricity connection to data centre campuses. Even where adequate generation and transmission capacity exists, inadequate local distribution infrastructure—such as substations, transformers or feeder capacity—can delay project commissioning. The roadmap is therefore expected to include measures for strengthening distribution networks in emerging data centre clusters.

Another key focus area is the increasing use of renewable energy and battery energy storage systems (BESS) to power data centres. Many global technology companies have adopted ambitious carbon reduction and net-zero commitments, leading to growing demand for round-the-clock green electricity. Integrating solar, wind and energy storage solutions with conventional grid supply can help data centres reduce their carbon footprint while improving long-term energy security and operational resilience.

The proposed roadmap aligns with India's broader digital and energy transition strategies. As the country positions itself as a global hub for AI, cloud computing and digital infrastructure, coordinated planning between power utilities, regulators and private developers will be essential to ensure that electricity infrastructure keeps pace with investment. By proactively addressing grid readiness, transmission expansion, renewable energy integration and distribution capacity, the government aims to create a reliable and sustainable power ecosystem capable of supporting the next generation of AI-enabled data centres and digital services.