India's data centre fears are misplaced: Yotta

Recent protests and concerns over India’s burgeoning data centre boom have led many to question whether the country can handle the strain on its power and water supplies. However, Yotta Data Services CEO Sunil Gupta argues that these fears are misplaced, citing the industry’s unique approach to energy and cooling infrastructure.

Gupta pointed out that large data centre operators can establish dedicated electricity networks and closed-loop cooling systems to minimize reliance on local infrastructure. He noted that many of the cited concerns are unfounded in the Indian context, as seen in Yotta’s facilities in Panvel near Mumbai and Greater Noida.

India’s data centre sector has historically built facilities capable of supporting thousands of GPUs, and the company itself plans to expand its installed base to about 38,000 GPUs by the end of October. Further expansion is expected between May and August next year, with over 85% of the demand for its capacity coming from overseas customers.

Gupta emphasized that India is currently power-surplus, although it may face challenges during peak summer periods. However, the real issue lies in the ability of local distribution networks to supply power to large facilities. He explained that Yotta avoids connecting to the local distribution network at its campuses, instead building its own substations and dedicated transmission lines to connect directly to the high-voltage grid.

Moreover, Gupta highlighted that modern Indian data centres utilize advanced cooling technologies, such as air-cooled chillers and water-cooled chillers with closed-loop systems, which significantly reduce the demand for fresh water compared to older US-based facilities. He also mentioned that small modular nuclear reactors (SMRs) could eventually provide an alternative and more reliable source of dedicated electricity for data centres, although the technology is not yet economically viable in India.