Data Centers Drive Surge in India’s Renewable Power Demand

A surge in data center construction in India is expected to significantly increase the country's need for renewable power, according to industry experts. Kuldeep Jain, managing director of CleanMax Enviro Energy Solutions, predicts that even a modest addition of 5 gigawatts of data center capacity would require between 30 and 40 gigawatts of renewable energy.

This demand is anticipated to outpace supply, as India prepares to implement measures to protect consumers from potential higher energy costs. Junior IT minister Jitin Prasada announced plans to address this issue following protests from residents in Mumbai regarding Amazon and Google's plans to build large-scale data centers in the region.

According to a report by Anand Rathi Research, India's renewable energy capacity to meet the power requirements of data centers is projected to double from 16.1 gigawatts this year to 32.4 gigawatts by 2030. Major tech companies are looking to secure long-term power supply through 15-20 year power purchase agreements or renewable energy partnerships, ensuring they obtain 100% of the environmental benefits generated by these projects.

One such partnership was recently formed between CleanMax and Meta Platforms, with CleanMax developing and operating 837 megawatts of solar and wind energy capacity across Rajasthan and Karnataka, while Meta agreed to purchase 100% of the environmental attributes of these projects. BNEF's India Transition Factbook 2026 predicts that India's data center power demand could skyrocket from 11 terawatt-hours in 2025 to 636 TWh by 2050, equivalent to roughly 11% of India's total electricity consumption at that time.

Initially, a significant portion of this demand will be met by a coal-based grid. However, data centers can mitigate this reliance on fossil fuels by utilizing renewable power through third-party contracts, captive and group-captive projects, onsite solar installations, and power exchanges.