• India expects AI data centres to add 26.3GW of electricity load by 2031–32, almost double its March estimate of 13.56GW
  • Power authorities are discussing transmission capacity, grid balancing and project siting with utilities, distributors and data-centre developers

The fact

India’s Ministry of Power projects that AI data centres will add 26.3GW of electricity load by the 2031–32 financial year. Minister of State for Power Shripad Naik told Parliament that the additional demand is expected to be integrated into the grid and served primarily by renewable-energy capacity.

The figure is almost double the government’s March estimate of 13.56GW. The latest projection is based on proposed data-centre projects submitted to state authorities rather than completed facilities. India’s operational data-centre capacity increased from about 375MW in 2020 to around 1.5GW in 2025.

The ministry is consulting state transmission utilities, electricity distributors and developers on reliable supply, transmission requirements and grid balancing. Officials are also considering whether some facilities should be located away from congested urban networks or closer to renewable generation.

The assessment

The revised forecast gives India’s grid planners a much larger potential load to prepare for, but it should not be read as confirmed capacity. Because the estimate is based on proposals submitted to state authorities, utilities still need to determine which projects are likely to proceed, when they may seek connection and what transmission or local network capacity each site would require.

Renewable generation may provide much of the energy, but data centres also need continuous power at specific locations. Depending on where projects are built, supporting them could require transmission upgrades, storage or other balancing resources. A concentration of new demand around established urban markets could also add pressure to already constrained networks.

The government has not published a state-by-state breakdown or disclosed how many proposed projects have secured grid connections. The practical constraint will be whether utilities can provide sufficient transmission and balancing capacity at each site on the required schedule. The 26.3GW figure is therefore a planning estimate, not a measure of capacity ready to be built.

What to watch

Watch for state-level demand figures, connection schedules and planned transmission upgrades, as well as any formal guidance on where large data centres can be built. Approved grid plans will provide a clearer indication of how much of the projected 26.3GW load is moving beyond the proposal stage.