Data Centers Rising to the Occasion to Embrace Sustainability
India’s access to abundant solar and wind resources positions it well to lead this shift, as global players set benchmarks by powering facilities with 100 percent renewable energy.
June 24, 2025. By News Bureau
Smart Cooling Solutions to Minimise Environmental Impact
Cooling is one of the most decisive factors in managing a data center’s environmental footprint. With no one-size-fits-all approach, operators are tailoring cooling strategies based on workload type, power density, and location. Techniques like magnetic levitation air-cooled Turbocor chillers and closed-loop chilled water systems improve baseline efficiency. For high-density racks, two-phase and immersion cooling can cut energy use making them ideal for AI training environments.
Evaporative and free cooling are being used in specific climates, while hybrid models, combining liquid and air, are helping operators balance performance and sustainability. In India, facilities are also reducing water consumption by using rainwater and sewage treatment plant (STP) -treated water for non-potable purposes. With demand rising sharply, efficient and workload-specific cooling will be key to scaling sustainably.
Transforming Energy Usage with AI at the Helm
As India ramps up its AI adoption, data centers are rapidly evolving to accommodate the resulting surge in high-density compute. According to Global Data Insights Survey, 75 percent of Indian businesses localise data to support AI deployments, while 60 percent incorporate sustainability into their AI strategies. To effectively manage these growing workloads, operators are increasingly relying on AI-driven energy optimisation, which employs intelligent automation to fine-tune cooling, balance power loads, and detect inefficiencies in real time. Predictive maintenance powered by machine learning also extends equipment life and reduces energy consumption.
The integration of machine learning (ML) and the internet of things (IoT) can greatly enhance automation, leading to the development of intelligent ecosystems that minimise downtime, extend equipment lifespan, and significantly lower energy costs. With India set to launch its first AI Special Economic Zone (SEZ) in Chhattisgarh, the opportunity to build sustainable, AI-optimized data centers at scale has never been more tangible. By collaborating with AI experts and technology providers, they can create customised solutions that effectively address regional challenges, including temperature fluctuations and seasonal humidity, paving the way for a more sustainable and efficient operational future.
The Transition to Clean Energy for Data Centers
India’s data center market is scaling rapidly, driven by a surge in AI workloads, expanding cloud ecosystems, and the effects of data gravity as more enterprises localise and interconnect their data. With over USD 15 billion invested since 2020, the momentum is clear, but so is the urgency to transition to clean energy as digital infrastructure becomes foundational to economic growth.
The Green Open Access Rules (GOAR), which lowered the renewable energy threshold to 100 kW, are enabling even mid-sized data center facilities to transition to clean energy more easily. This regulatory shift is not just facilitating industry-wide compliance, it also supports India’s progress toward key UN Sustainable Development Goals by making renewable adoption more accessible and scalable across the sector. By late 2024, 28 states and Union Territories had adopted or drafted supportive policies, leading to a 90 percent surge in open access capacity across the commercial sector, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
The opportunity ahead lies in aligning infrastructure growth with India’s climate commitments. As demand for uninterrupted power rises, reducing reliance on fossil fuels will be key. Integrating renewable sources like solar, wind, and hydro into core operations offers a credible path forward, and India, with its energy potential and policy support, is well-positioned to lead. What's needed now is a stronger push for long-term partnerships among data center operators, energy providers, and policymakers to unlock sustainable capacity at scale. As the sector moves forward, the emphasis must be on developing infrastructure that is digital-first, resilient, and prepared to meet both compute and climate demands.
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