Data Centre Expansion in India Raises Water Footprint Concerns – Policy & Environmental Implications

Overview India’s push to become a global hub for data centres is creating a hidden environmental cost. A study by the University of California, Riverside shows that a typical ChatGPT conversation of 20‑50 exchanges can use up to half a litre of water. With capacity projected to reach 13.56 GW by 2031‑32, the water demand could become a serious challenge for water‑stressed states. Key Developments India’s data‑centre capacity is expected to rise from 375 MW in 2020 to about 1,500 MW by 2025 and 13.56 GW by 2031‑32. The UN report estimates a water footprint of 4.5 trillion litres in 2025, enough for Chennai’s water needs for 8.8 years. States such as Andhra Pradesh, Uttar Pradesh and Gujarat have announced incentives and policies (e.g., Data Centre Policy 2026 , Data Centre Policy 4.0 ) to attract investments. Major projects include Google‑AdaniConneX’s 1 GW AI hub in Visakhapatnam, Bharti Airtel’s Nxtra, and Meta‑Reliance AI‑enabled centre in Jamnagar. Protests have erupted in Visakhapatnam and Thane over water and electricity pressures. Important Facts • The water footprint of data‑centres could double to 9.3 trillion litres by 2030. • Groundwater extraction in India stands at 60.47 % overall, with 11.1 % of districts classified as “over‑exploited.” • Gautam Buddha Nagar (Uttar Pradesh) shows 104.79 % extraction, indicating unsustainable use. • Visakhapatnam’s groundwater reserve fell to 2.12 thousand million cubic feet in April 2026 – the lowest in the state. • Gujarat’s coastal belt faces seawater ingress and salinity, complicating freshwater availability. UPSC Relevance Understanding the nexus of data centres and water resources touches several GS papers. GS 3 (Economy & Environment) requires knowledge of infrastructure‑driven water stress, while GS 1 (Geography) covers regional groundwater depletion. Policy‑making aspects of state incentives and environmental clearances relate to GS 2 (Polity). The role of bodies like the CGWB illustrates inter‑governmental coordination. Way Forward • Mandatory disclosure of monthly and peak water use, source (potable, reclaimed, groundwater) for all data‑centres. • Stricter permitting in water‑stressed regions, with drought‑restriction clauses. • Promote cooling technologies that use reclaimed or seawater, ensuring safe brine disposal as per international guidelines. • Encourage research on low‑water cooling methods and incentivise renewable‑energy‑powered data‑centres. • Strengthen state‑level implementation of national environmental guidelines to balance digital growth with water security.