State Government Bets On 16 7 Lakh Crore Data Centre Push

Mumbai: An ambitious ₹16.7 lakh crore plan is underway to develop the Mumbai Metropolitan Region (MMR) into the country’s leading data centre hub. In addition to the existing 20 data centres that are operational in the state, 28 projects worth ₹7.77 lakh crore are under implementation, while another 16 projects involving investments of ₹8.91 lakh crore are in planning stage. At a meeting chaired last week Maharashtra chief minister Devendra Fadnavis said 60% of India’s data centres will be in MMR after these projects are completed.

Data centres are massive warehouse-sized buildings that host powerful computer systems used to train AI models. Around the world there is an increasing pushback against data centres as they guzzle water and electricity. As per an International Energy Agency (IEA) estimate, a 100 MW hyperscale data centre can consume around 2 million litres of water per day for cooling . Mumbai’s domestic water consumption is approximately 135 litres per person per day, and a family of four uses about 540 litres a day. A single 100 MW (megawatt) data centre consuming 2 million litres daily uses water equivalent to the daily needs of roughly 3,700 households, or about 14,800 people. The MMR’s daily water need is about 8000 MLD (million litres per day). Once operational, these data centres will need 856 MLD, roughly 10 % of the water consumed by the populace.

Developing data centres is both contentious and complex. These centres in MMR are also projected to generate more that 1.46 lakh direct jobs according to the government. The state’s data centre push is closely linked to its broader economic ambitions for MMR. At present, MMR is a $140 billion economy with a per capita income of ₹4.36 lakh. But between 2012 and 2020, the region recorded a relatively modest growth rate of 6.1 % which was below the national average. A September 2024 NITI Aayog report projected MMR to emerge as one of the world’s leading metropolitan economies with a GDP approaching $1.5 trillion by 2047. MMR is an important component of the BJP’s planned ‘Virasat Se Vikas Tak’ campaign for 2047 which is the centennial year of India’s independence. The region needs to consistently attract investments worth $135 billion over seven years to reach its target. Because of the existing industrial hubs and the subsea cable connectivity, the state expects digital infrastructure and data centres to power this growth.

Several marquee data centre projects have been incentivised to invest in MMR. Among the largest is the Blackstone-backed Brep Asia III Holdings’ proposed ₹2 lakh crore integrated green data centre project with a capacity of 2 GW (Gigawatt). The company has received a Letter of Intent, and is scouting for land in the region.

Amazon Web Services has proposed a ₹65,000 crore investment for a large-scale facility at Taloja in Navi Mumbai. Other major projects include Adani Infra’s ₹1.2 lakh crore integrated green data centre project with 2,000 MW capacity, also in Taloja; the Hiranandani-owned Yotta Data Services’ ₹90,000 crore project at Panvel with a capacity of 2,200 MW; AdaniConneX projects in Navi Mumbai and Pune worth ₹70,000 crore and ₹80,000 crore respectively; Lodha Developers’ ₹30,000 crore data centre campus in Thane with a capacity of 2,000 MW; and JW Global India’s ₹1.14 lakh crore project near Solapur’s Ujani Dam, which has already received a Letter of Intent.

Microsoft, NTT, STT Global, CtrlS, Princeton Digital Group and Digital Edge too have either announced investments or are expanding their presence in the state.

Water, power and environmental challenges

While the investment story is promising, water availability has emerged as one of the most significant challenges in this expansion. The proposed data centre ecosystem is expected to require approximately 856 million litres of water per day (MLD). Of this, 601 MLD will be required by projects currently under implementation, while another 255 MLD will be needed by projects in the pipeline.

Taloja alone will require 140 MLD, Navi Mumbai 136 MLD and Panvel 108 MLD.

Rakesh Kumar, former Mission Director for national Carbon Capture, Utilisation and Storage (CCUS) projects at the Council of Scientific and Industrial Research (CSIR), said the government must ensure that data centre-led growth does not come at the cost of water and environmental sustainability. “Rather than focusing solely on data centres’ water consumption, policymakers should address the much larger challenge of untreated sewage. More than 70% of wastewater is still not treated. Data centres can become part of the solution by treating and reusing wastewater instead of drawing freshwater, thereby reducing pressure on rivers and other water bodies. This requires a clear policy framework, strict implementation and accountability.”

In the US, which hosts upwards of 4000 data centres, there has been mounting pressure from people like Democrat representative Alexandria Ocasio-Cortez and celebrated activist Erin Brokovich against the drain on water supplies and mounting power costs.

In MMR too, the projects collectively require tens of thousands of megawatts of electricity, with several individual projects requiring between 1,300 MW to 3,000 MW. Industry experts believe that while Maharashtra currently enjoys a strong power infrastructure advantage, substantial investments in transmission networks, substations and renewable energy integration will be necessary to support future growth.

A report by the Delhi-based thinktank Council on Energy, Environment and Water (CEEW) estimates that a 100 MW hyperscale data centre running 24 hours a day consumes about 2.4 million kWh (units) of electricity daily and around 876 million kWh annually.

By comparison, an average Indian urban household consumes about 1,937 kWh annually, according to a recent household energy survey. This means a 100 MW data centre can consume as much electricity as roughly 4.5 lakh urban households in a year. On a daily basis, the same facility uses enough electricity to power about 12,000–15,000 middle-class households for an entire month.

Environmentalist D. Stalin has urged the state government to publish a white paper detailing the sector’s projected water and electricity requirements and their impact on citizens. He said Mumbai and the MMR are already facing groundwater stress, increasing salinity and mounting pressure on potable water resources. “Promoting water-intensive data centres in a region grappling with water scarcity could worsen shortages for households and agriculture while significantly increasing power consumption. Farmers continue to struggle for irrigation water, yet substantial resources are being allocated to data centre projects. The moment these centres become operational, there could be serious pressure on local water and electricity resources.”

Speaking about the concerns over the power and water usage by these data centres, chief minister Devendra Fadnavis told HT, “The concerns are understandable, and sustainability has been built into our planning from the very beginning. On water, we are encouraging the use of treated wastewater, recycling systems and advanced cooling technologies that significantly reduce freshwater consumption. Many modern data centres are moving towards highly water-efficient designs, and we are actively promoting such practices. On power, Maharashtra is undertaking one of the largest energy expansion programmes in the country. We are adding substantial renewable energy capacity, strengthening transmission infrastructure and creating dedicated power arrangements for large industrial consumers. We are at 57 GW right now with 21% renewable. We will be at 93 GW by 2030 with 52% renewable. It is important to note that these investments are being planned in advance and in parallel with the growth of the data centre sector. We will ensure that the requirements of citizens, agriculture and industry continue to be protected. Our objective is clear: to support digital growth without compromising essential services or resource security.”

Amar Supate, retired Principal Scientific Officer, Maharashtra Pollution Control Board (MPCB), said data centres do not pose a significant environmental or safety risk if they are located away from ecologically sensitive zones such as CRZ areas, earthquake-prone regions and other fragile ecosystems. “Modern data centres are built with robust safety systems and multiple layers of backup. The key issues are proper site selection, environmental safeguards and planning for water and power requirements. Compared with many other industries and the pace of urbanisation, data centres require relatively limited land. The focus should be on scientific planning and sustainable infrastructure rather than opposing such projects outright,” he said.

The state government is also in the process of acquiring around 3,000 acres of land for data centres and ancillary infrastructure in Taloja, Mahape and the proposed Third Mumbai area. Officials said compensation offered under land acquisition laws is substantially above prevailing market rates, resulting in limited resistance from landowners.

As Maharashtra positions itself as India’s digital infrastructure capital, the success of its ambitious data centre strategy may ultimately depend on how effectively it balances investment-led growth with long-term water, energy and environmental sustainability.

Surendra P Gangan is Senior Assistant Editor with political bureau of Hindustan Times’ Mumbai Edition. He covers state politics and Maharashtra government’s administrative stories. Reports on the developments in finances, agriculture, social sectors among others.Read More