MUMBAI: The Maharashtra government has approved 12 new data centre projects across the state, taking the number of operational and proposed facilities to 32. The 12 projects, for which letters of intent were recently issued, are largely concentrated in the Mumbai Metropolitan Region (MMR) except for one coming up in Pune IT hub Hinjewadi.
Data centres are resource-intensive in nature and require substantial amounts of electricity and water for computing operations and cooling. Maharashtra, which is attracting substantial investments in the sector, has positioned itself as a major data centre hub. Data centres house powerful computer systems that store and process digital information and support applications ranging from cloud computing to artificial intelligence. Their expansion has sparked concerns globally over rising electricity demand, water consumption and the pressure they can place on local infrastructure. The Kakodkar-led committee was constituted following concerns raised by MLAs during the recently concluded monsoon session. They flagged the potential strain that data centres place on existing water resources and infrastructure, along with rising temperatures, environmental impacts and consequences for local residents’ daily lives and access to basic amenities. In response, the state government assured the House that a committee of experts would undertake a comprehensive assessment of the impact of proposed data centre projects. The panel has been given three months from the date of the government resolution to submit a final report containing policy recommendations based on objective, scientific and technical information. Its terms of reference include assessing the impact of data centres on water, energy, air quality, noise levels and local ecosystems; studying best practices in India and abroad; and recommending guidelines for energy-efficient, green and sustainable facilities. It will also examine water conservation, recycling and reuse, and alternative cooling technologies.
Chief minister Devendra Fadnavis has set a target of locating 60% of the country’s data centres in MMR. A 100-megawatt hyperscale data centre can consume around two million litres of water a day, according to an estimate by the International Energy Agency. In comparison, Mumbai’s domestic water consumption is approximately 135 litres per person per day.
“The committee will conduct a scientific study of the impact of data centres on the environment, water, energy, air quality, noise levels and local ecosystems,” the government resolution (GR) states, while outlining its mandate to recommend measures for sustainable data centre development. However, after concerns raised by environmental experts, local residents and legislators on the environmental impact of data centres, the government on Monday also constituted a committee headed by former Atomic Energy Commission chairperson Dr Anil Kakodkar to assess the sector’s impact on water, electricity, the environment and local communities.

