Sustainable Cooling Technologies in Data Centres
India’s data centre (DC) sector is entering a phase of rapid expansion, with installed IT capacity expected to grow from around 1.5 GW in 2025 to nearly 17 GW by 2032. Driven by AI, cloud computing and data localisation, DCs are becoming critical infrastructure for India’s digital economy, with this expansion creating significant implications for electricity, water and greenhouse-gas emissions. Cooling, which can account for 30–50% of a facility’s energy use, will be central to achieving efficient and sustainable growth.
The study, undertaken by AEEE with support from the Ozone Cell, Ministry of Environment, Forest and Climate Change (MoEF&CC), examines cooling technologies, refrigerant practices and resource-efficiency opportunities across Indian DCs. Drawing on field assessments of seven facilities across India, stakeholder consultations, national and international policy reviews, and relevant case studies, it adopts a technology-neutral, performance-based approach focused on improving cooling efficiency and overall DC performance.
The study identifies significant opportunities to improve resource efficiency and strengthen the sector’s long-term resilience. Estimates suggest that improving Power Usage Effectiveness (PUE) from 1.60 to 1.25 could save approximately 37 TWh of electricity by 2032, equivalent to Delhi’s current power demand. Combined with increased renewable energy penetration, these improvements could reduce the sector’s carbon footprint by around 60%. At the same time, cooling choices present an important energy–water trade-off, with water consumption potentially reaching 331 billion litres annually under water-cooled systems. The study therefore proposes a phased approach combining performance disclosure and benchmarking, climate- and water-responsive cooling choices, low-GWP refrigerants, skills development, financing, wastewater reuse, waste-heat recovery and improved operational practices. Together, these measures can help align India’s digital and AI-led growth with resource efficiency, resilience and long-term sustainability.
Key Highlights:
- Rising computing density is reshaping data-centre cooling: AI and high-performance computing are driving higher rack power densities beyond the practical limits of air-cooling, increasing the need for liquid and hybrid cooling alongside advanced air-cooling solutions.
- Cooling choices require an energy–water trade-off: Water-efficient and energy-efficient cooling do not always align. Technology selection should consider energy performance, climate and local water availability, with treated wastewater offering an opportunity to reduce freshwater dependence.
- Operational optimisation can deliver significant efficiency gains: Airflow management, controls, temperature optimisation, equipment sequencing and maintenance can improve performance with limited capital investment and should complement technology upgrades.
- Skills and domestic capabilities will be critical: Advanced cooling systems and low-GWP refrigerants require specialised skills across design, installation, operation and maintenance, while creating opportunities for Indian manufacturers and service providers to strengthen domestic capabilities.
- Data-centre growth requires coordinated infrastructure planning: Power, water, land, connectivity and other infrastructure should be considered together when planning DC clusters, helping guide investments towards locations that can support reliable, resource-efficient and resilient long-term growth.
