India’s AI Data Centre Power Demand to Reach 26.3 GW by FY32: Government

Artificial intelligence (AI) data centres are expected to add 26.3 GW to India's electricity demand by 2031-32, according to the Union Government, as per news reports.  

Minister of State for Power Shripad Naik shared the projection in a written reply to Parliament, stating that the additional demand will be integrated into the national grid and largely met through renewable energy sources. 

Projection Doubles Previous Estimate 

The latest forecast is significantly higher than the government's earlier estimate released in March 2026, when electricity demand from data centres was projected at 13.56 GW by FY32. 

To support the higher requirement, the Ministry of Power said it is expanding transmission infrastructure in phases while adding generation capacity, including renewable energy projects. 

AI Investments Drive Data Centre Expansion 

The revised estimate comes as both Indian companies and global technology firms accelerate investments in AI-ready data centres. 

HCLTech recently signed an MoU with Sarvam AI to develop a $1.5 billion AI data centre in Odisha. Google is building a $15 billion AI data centre hub in Visakhapatnam, while Microsoft has committed $3 billion to expand its cloud and AI infrastructure in India. 

According to news report, India's total data centre capacity is expected to increase from 2.2 GW in 2025 to 12 GW by 2030. AI-dedicated capacity is projected to rise from 275 MW to 6,546 MW during the same period, while the country's AI market could reach ₹11.7 trillion by 2032. 

Peak Electricity Demand Set to Rise 

The Central Electricity Authority's (CEA) midterm review of the 20th Electric Power Survey, cited by the Ministry of Power, projects India's peak power demand to increase from 289 GW in FY27 to 388 GW by FY32. 

The sharpest annual rise is expected in FY27 at 17.96%, followed by yearly growth of about 5% to 7% through FY32. 

Read More: Banks Collected Over ₹26,170 Crore in Minimum Balance Penalties in 4 Years: Government Data! 

Conclusion 

The government's revised projections highlight the growing electricity requirements associated with India's expanding AI ecosystem. Alongside rising investments in data centre infrastructure, the increase in projected peak power demand underscores the scale of transmission and generation capacity being planned to support future digital and industrial growth. 

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