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A viable Indian data-center site needs two separate proofs before construction: a phase-by-phase electricity model backed by written utility and transmission feasibility, and a cooling-specific water balance backed by seasonal source, quality, treatment and discharge checks. National forecasts can show why demand is growing, but they do not reserve capacity for your parcel.

Start by defining the IT capacity, utilization, power-usage effectiveness (PUE), rack-density mix, redundancy and expansion plan. Then calculate each phase’s continuous and peak facility demand, obtain a connection study from the relevant distribution and transmission entities, and model construction, domestic and cooling water separately. Treat environmental clearance, groundwater, wastewater and local supply permissions as design- and location-specific questions.

1. Define the project envelope before calculating anything

Write down the assumptions that determine resource demand. A utility, water authority or regulator cannot evaluate an undefined project, and a model that hides its assumptions is difficult to update when the design changes.

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Record these inputs for every phase

  • Site coordinates, state, distribution-utility service area and proposed connection point.
  • Planned IT load capacity in megawatts (MW), commissioning date and expansion ceiling.
  • Expected utilization of installed IT capacity, including a conservative and a high-growth case.
  • Rack-density profile: conventional racks, high-density compute, and any liquid-cooled zones.
  • Operating hours, maintenance windows and the distinction between continuous and short-duration peak demand.
  • Electrical topology: utility feeds, substations, generators, batteries, transformers, switchgear and planned redundancy.
  • Cooling architecture, design ambient conditions, water source, treatment plant and discharge route.
  • Construction schedule, temporary power and water requirements, workforce facilities and domestic demand.
  • Which figures are preliminary assumptions and which have been confirmed in writing by a utility, water supplier or engineering study.

Keep an assumptions register with an owner, date and evidence for each value. A change from air cooling to a liquid-cooling loop, for example, changes both electrical auxiliaries and the water balance; it should trigger a model revision rather than a footnote.

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2. Convert IT capacity into a facility electricity requirement

Do not equate IT load MW with the electricity that must be delivered to the site. NITI Aayog presents the relationship as:

Electricity demand = IT load capacity × utilization factor × power-usage effectiveness (PUE). See the data-centre demand modelling section of NITI Aayog’s Scenarios Towards Viksit Bharat and Net Zero: Sectoral Insights—Buildings.

Show the calculation for each phase

For an illustrative, not site-specific, 100 MW IT build operated at 40% utilization with a PUE of 1.6, the average facility demand represented by that equation is 64 MW (100 × 0.40 × 1.6). Replace every illustrative value with the design team’s documented baseline and stress case. The result is an average model output, not a connection approval or a statement of the site’s maximum instantaneous load.

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Your worksheet should show, separately:

  • IT demand: installed capacity, expected utilization and the load profile of high-density rooms.
  • Overhead demand: chillers, pumps, cooling towers or dry coolers, air handlers, humidification, lighting, controls, security and other building systems.
  • Electrical losses: transformers, UPS systems, batteries and distribution equipment included in the selected PUE boundary.
  • Peak demand: the maximum import or contracted demand under hot-weather operation, staged equipment starts, battery recharge and other coincident events.
  • Energy: monthly and annual megawatt-hours, which are different from the MW capacity that the connection must support.

Model growth rather than one final number

Build a phase table with ready-for-service dates, IT MW, utilization, PUE, average MW, design peak MW and the date at which the next increment is required. Include a slow-occupancy case and a rapid-ramp case. A utility may be able to serve phase one but not the ultimate campus without a new substation, transmission reinforcement or a second connection point.

State whether the PUE is a design target, a measured operating value or a vendor estimate. Hot and humid Indian conditions, partial occupancy and operation of redundant equipment can produce a different PUE from the value used in a financial model.

Account for reliability architecture

Redundant electrical paths do not automatically reduce the utility capacity you must procure. Determine whether both utility feeds are expected to carry load during normal operation, whether one feed must carry the full critical load after a failure, and how generator and battery systems affect the import profile. Ask the electrical engineer to document N, N+1, 2N or another topology in terms of actual transformer, feeder and generator ratings, not just a label.

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3. Put national demand figures in their proper context

Published Indian estimates use different dates and appear to use different scopes. They are useful context for infrastructure planning, not evidence that a particular plot has a connection available.

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Source and date Published figure How to use it
MeitY parliamentary response, 13 March 2026 About 375 MW of data-centre capacity in 2020 and around 1,500 MW by 2025; 13.56 GW of demand by FY 2031–32 was reported from a Ministry of Power estimate. National context. The response does not establish a site connection, and its scope is not reconciled with the 2025 Ministry of Power figures.
Ministry of Power, Rajya Sabha answer, 10 February 2025 854 MW of IT-load capacity; 5,640 MW of expected upcoming demand by FY 2031–32, including 3,535 MW likely by FY 2027–28. A dated national estimate citing an industry research report. Do not combine it arithmetically with the 2026 figures.
NITI Aayog scenario 16 GW of IT load by 2030 at 40% utilization and PUE 1.6, yielding about 10 GW of electricity demand. A scenario with stated assumptions, not a forecast of your project or a utility commitment.

The 2025 and 2026 numbers differ materially, and the cited sources do not explain the difference in baseline, methodology or included facilities. Preserve each publication date and attribution in board papers and connection applications.

4. Obtain site-specific evidence that power can be delivered

A national resource-adequacy plan can indicate that generation, transmission, distribution, storage and flexible resources are being planned. It cannot tell you whether the feeder serving your parcel has spare capacity, when a substation upgrade will finish or how outages will be restored.

Request a written feasibility response

  1. Identify the authorities. Confirm the state distribution company, transmission utility, relevant load-dispatch entity and any special economic-zone or industrial-estate operator.
  2. Submit a defined load schedule. Provide each phase’s IT load, average and peak import, voltage level, power factor, energisation date, ramp schedule and redundancy requirement.
  3. Ask for the connection point and studies. Request the proposed substation or transmission node, available capacity by phase, short-circuit and stability constraints, required line or bay works, metering, protection and ownership boundaries.
  4. Get a dated energisation path. Separate application, approval, equipment procurement, construction, testing and commercial-operation dates. Make the critical path explicit.
  5. Clarify reliability. Ask for historical outage data where available, planned-outage notice, restoration arrangements, feeder and substation redundancy, and the utility’s treatment of a second independent feed.
  6. Price the complete connection. Obtain estimates for network augmentation, dedicated lines, substations, wheeling or transmission charges, deposits, metering, protection, synchronization and recurring demand or energy tariffs.
  7. Check operating conditions. Confirm power-quality limits, reactive-power requirements, harmonics, fault-ride-through obligations and restrictions on generator parallel operation or battery charging.
  8. Revalidate at financial close. Ask the utility to update the feasibility when the phase schedule, load profile or connection point changes.

Keep the utility letter, single-line diagrams, study assumptions and correspondence in the project data room. A verbal assurance or a nearby data centre’s supply arrangement is not evidence for your site.

Use resource-adequacy planning without overclaiming

The Ministry of Power, in consultation with the Central Electricity Authority, issued India’s resource-adequacy guidelines in June 2023; state and Union-territory frameworks translate the approach to local planning. The Ministry of New and Renewable Energy overview explains that context. It does not replace a parcel-level connection study.

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5. Build a cooling-specific water balance

There is no single official litres-per-MW value that can be applied to every Indian data centre. MeitY states that water requirements depend on the cooling technology deployed. The government materials cited here do not publish a comparable national data-centre water-consumption total.

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List every use, source and destination

Water-balance item Questions to answer
Construction What will be needed for concrete, curing, dust suppression, worker facilities and commissioning tests in each month?
Domestic and welfare What population, shifts and sanitary systems will be served, and how will demand change after construction?
Cooling make-up What volume is required for evaporation, drift, flushing and other losses at design ambient conditions and partial load?
Cooling blowdown What concentration cycles and water-quality limits determine blowdown, and where will it be treated or discharged?
Liquid-cooling loop What initial fill, filtration, corrosion control, maintenance drain-down and replacement water are required?
Water treatment What reject stream comes from softening, reverse osmosis or demineralization, and can it be recovered?
Greywater and reuse How much treated wastewater can serve flushing, irrigation, cooling make-up or other non-potable uses?
Source and discharge Is water municipal, surface, groundwater, treated wastewater or another source? Who owns the discharge route and its capacity?

Model average-day, maximum-day and dry-season demand. Include startup, maintenance and upset conditions rather than only steady-state operation. Record water quality—salinity, hardness, silica, biological load and suspended solids where relevant—because treatment requirements and blowdown depend on it.

Stress-test seasonal reliability

Obtain written supply volumes, pressure and interruption terms from the municipal or industrial supplier. For surface or reclaimed water, check the dry-season allocation and treatment-plant operating history. For groundwater, verify aquifer conditions, extraction limits and permit status. Define storage days for each water class and the operating response when non-potable supply is interrupted.

Run at least a normal-year case and a restricted-supply case. Identify which loads can be curtailed, whether cooling can switch modes, and how much treated water must be reserved for fire protection and essential domestic use. A site that meets an annual average can still fail during the hottest, driest operating period.

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6. Compare cooling choices with water, energy and density together

MeitY identifies direct-to-chip liquid cooling, adiabatic cooling and immersion cooling as approaches used to reduce water use. The cited government sources do not rank them for every climate or rack profile. Choose only after modelling thermal performance, electrical demand, maintenance and water availability together.

Approach Water questions Other design questions
Conventional mechanical cooling with cooling towers Calculate evaporation, drift, blowdown, treatment reject and the reliability of make-up water. Assess tower plume, chemical management, fan and pump energy, acoustic limits and hot-weather capacity.
Adiabatic or evaporative assistance Quantify when water is used, how dry-bulb and wet-bulb conditions change consumption, and what happens during water restrictions. Model seasonal energy trade-offs, controls, filtration and humidity or air-quality constraints.
Direct-to-chip liquid cooling Account for loop fill, heat-exchanger losses, maintenance drain-down and any facility-side heat-rejection water. Check rack compatibility, coolant chemistry, leak detection, service procedures and heat-rejection equipment.
Immersion cooling Measure fluid fill and replacement rather than assuming “waterless” means no water anywhere in the facility. Check hardware compatibility, dielectric-fluid handling, maintenance workflow, fire protection and heat rejection.
Dry or air-cooled heat rejection Operational cooling water may be low, but treatment, domestic and emergency supplies remain. Evaluate high-ambient performance, footprint, fan power, noise and the effect on PUE.

When cooling towers are used, the Bureau of Energy Efficiency’s 2023 District Cooling Guidelines, cited by the Ministry of Environment, Forest and Climate Change, recommend treated water for cooling-tower make-up where feasible and discuss energy efficiency, alternative sources and conservation. See the 6 August 2026 MoEFCC parliamentary reply. Treat that recommendation as a design consideration, not a universal legal mandate.

7. Design reuse, treatment and discharge before selecting the site

Map the full water loop: source, raw-water storage, treatment, process use, recovery, reject, equalization, final treatment and discharge. A proposal that counts only cooling make-up can understate reverse-osmosis reject, blowdown, laboratory or maintenance waste and domestic sewage.

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  • Separate potable, process, treated-reuse and fire-water systems so a quality problem does not disable every use.
  • Specify conductivity, hardness, microbiological and chemical limits for each cooling circuit.
  • Measure make-up and blowdown with dedicated meters; use a water balance that reconciles intake, reuse, discharge and unexplained loss.
  • Evaluate treated municipal wastewater or other reclaimed sources where legally and technically available.
  • Provide storage and bypass arrangements for treatment-plant maintenance and supplier interruptions.
  • Confirm discharge quality, consent limits, sewer or common-effluent-treatment-plant capacity and monitoring responsibilities in writing.

8. Check environmental clearance and water permissions locally

A data centre is not automatically required to obtain Environmental Clearance solely because it is a data centre. The MoEFCC’s 6 August 2026 parliamentary reply says clearance may apply when the proposal falls within the EIA Notification, 2006, as amended—such as a Building and Construction Project under Item 8(a) with built-up area exceeding 20,000 square metres, or a Township and Area Development Project under Item 8(b) covering at least 50 hectares and/or having built-up area of at least 150,000 square metres. The reply identifies the State or Union-territory Environmental Impact Assessment Authority (SEIAA) as the clearance authority for such building projects. Verify the current notification, classification and thresholds with the competent authority and project counsel.

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Issue What to verify Likely authority or source
Environmental clearance Whether the built-up area, land area and project configuration fall under Item 8(a), 8(b) or another current category. SEIAA and the current EIA Notification.
Groundwater abstraction Whether the proposed source is regulated, what no-objection or extraction permission is required, and whether the location is restricted. Ministry of Jal Shakti guidelines S.O. 3289(E), 24 September 2020, amended 29 March 2023, plus the competent groundwater authority.
Wastewater and greywater Consent to establish and operate, treatment standards, monitoring, reuse and discharge route. State Pollution Control Board or Pollution Control Committee under the Water (Prevention and Control of Pollution) Act, 1974.
Air and backup generation Diesel-generator emissions, fuel storage, noise, stack requirements and operating permissions. State Pollution Control Board or Pollution Control Committee under the Air (Prevention and Control of Pollution) Act, 1981 and applicable rules.

The cited reply says construction and operational water use and greywater discharge are regulated under the Water Act and that pollution-control boards or committees monitor compliance. Requirements vary by source, design and location; obtain written applicability opinions before land acquisition or final design.

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9. Evaluate renewable procurement without treating it as guaranteed supply

The Ministry of Power’s 2025 answer notes that renewable resources integrated into the national grid can also meet data-centre demand and that states offer incentives. That statement does not guarantee a renewable percentage, uninterrupted supply, open-access approval or a particular tariff for your facility.

Ask the utility and energy counsel to confirm state-specific rules for open access, captive or group-captive structures, scheduling, banking, wheeling, transmission charges, cross-subsidy surcharges, curtailment and renewable-energy certificates. Model the physical reliability system separately: renewable contracts and certificates do not replace firm capacity, storage, backup generation or a utility connection capable of carrying the load.

10. Use decision gates before committing capital

Gate 1: Concept feasibility

  • IT MW, utilization, PUE, rack-density and phase assumptions are documented.
  • Cooling options have preliminary electrical and water balances.
  • At least one plausible utility connection point and one water source are identified.

Gate 2: Written infrastructure evidence

  • Distribution and transmission entities have responded in writing with capacity, connection works and dates.
  • Water suppliers or authorities have stated seasonal quantity, quality, pressure and interruption terms.
  • Groundwater, discharge and clearance applicability has been checked for the actual location.

Gate 3: Detailed design

  • Peak and continuous electrical loads reconcile with single-line diagrams and equipment ratings.
  • Cooling make-up, blowdown, treatment reject, reuse, storage and discharge reconcile across seasons.
  • Permits, consents, land-use conditions and utility works are on a dated responsibility matrix.

Gate 4: Financial close and construction release

  • Connection and water-supply agreements are executable, not merely indicative.
  • Long-lead transformers, switchgear, chillers, treatment equipment and storage are aligned with energisation and commissioning dates.
  • Contingencies are funded for feeder reinforcement, water-quality treatment, temporary supply and schedule delay.

11. Common assessment failures and their fixes

Failure: using IT MW as the site connection size

Fix: apply utilization and PUE, then add the documented peak, redundancy and expansion cases.

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Failure: quoting a national forecast as proof of local capacity

Fix: retain forecasts as context and obtain a parcel-specific feasibility letter, network study and energisation schedule.

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Failure: reporting one annual water number

Fix: separate construction, domestic, cooling make-up, blowdown, treatment reject and reuse, then test the dry season and restricted-supply case.

Failure: calling a design “waterless” because the rack loop is closed

Fix: include heat rejection, loop fill, maintenance losses, treatment, domestic use and emergency supplies in the site balance.

Failure: assuming environmental clearance is either always required or never required

Fix: test the project against current EIA categories and thresholds, then obtain a written view from the competent authority or counsel.

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Failure: selecting renewable procurement before checking firm capacity

Fix: secure reliable physical supply first; evaluate open-access and renewable arrangements as a separate commercial and regulatory workstream.

12. The documents your investment committee should require

  • Phase load model showing IT load, utilization, PUE, average demand, peak demand, energy and growth assumptions.
  • Electrical single-line diagram and redundancy narrative, including failure-mode load transfer.
  • Written distribution and transmission feasibility, connection point, network works, costs and energisation dates.
  • Cooling basis of design with technology comparison, rack-density assumptions and hot-weather performance.
  • Monthly and seasonal water balance covering all sources, uses, reuse, treatment reject, blowdown, discharge and storage.
  • Water-quality and treatment specifications, supplier commitments and interruption procedures.
  • Regulatory matrix for environmental clearance, groundwater, pollution-control consents, wastewater and backup generation.
  • Renewable and open-access assessment that distinguishes contractual energy attributes from firm physical capacity.
  • Risk register showing the trigger, owner, evidence required and fallback for every unresolved power or water dependency.

Conclusion: approve only what the site evidence supports

Power feasibility is demonstrated by a transparent phase model plus written, site-specific utility and transmission evidence. Water feasibility is demonstrated by a design-specific, seasonal balance that includes cooling technology, treatment, reuse, discharge and source permissions. National projections and resource-adequacy plans help frame the market, but they cannot substitute for those two proofs. If either proof depends on an unconfirmed upgrade, seasonal allocation or permit, treat it as a gating risk in the acquisition and construction schedule.

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