India's data centre sector is facing higher thermal stress due to extreme heat, leading to increased cooling demand, electricity consumption, and water use

¨     India's data centre sector is facing higher thermal stress due to extreme heat, leading to increased cooling demand, electricity consumption, and water use.

¨     Planned AI data centres in Tamil Nadu, Telangana, and Karnataka have been identified among the global locations at high risk of operational disruption from extreme heat.

¨     A data centre is a facility that stores, processes, and distributes digital data through servers, storage systems, and networking equipment.

¨     AI data centres and high-performance computing (HPC) facilities generate more heat than conventional server rooms because of dense computing hardware and continuous workloads.

¨     Traditional air cooling is often insufficient for high-density AI facilities; therefore, liquid cooling is increasingly used for thermal management.

¨     The India Data Center Liquid Cooling Market was valued at USD 166.69 million in 2024 and is projected to reach USD 958.74 million by 2032, growing at a CAGR of 24.58%.

¨     XDI's risk assessment covered 41 planned data centres in India, of which 12% were classified as high-risk properties.

¨     The average damage risk to these data centres is projected to increase by 269% between 2026 and 2100.

¨     By 2040, nearly 90% of India's data centres could experience prolonged heat stress.

¨     More than half of India's data centres are currently located in regions where temperatures exceed 35°C for over 90 days each year.

¨     Bengaluru currently hosts 31 operational data centres, with 2 more under construction.

¨     The city's expanding data centre cluster is associated with the Urban Heat Island effect, noise pollution, air pollution, and high water consumption.

¨     The Urban Heat Island effect is a phenomenon in which built-up urban areas become significantly warmer than surrounding rural areas due to concrete surfaces, reduced vegetation, and waste heat from buildings and vehicles.