Why water matters for data centres

Data centres require constant cooling to keep servers operating reliably. Traditional cooling systems — especially evaporative and chiller-based solutions — depend heavily on water. As hyperscale campuses multiply, cumulative water demand can reach millions of litres per day for a single site, particularly in hot, humid climates.

Where the risk is highest

Key Indian hubs such as Mumbai, Chennai, Hyderabad, and Delhi-NCR are attractive because of connectivity and demand. However, many of these regions already face seasonal water stress. Unchecked data centre growth without sustainable water planning risks:

• Competition with municipal and agricultural water users
• Regulatory restrictions or moratoria from local authorities
• Rising operating costs and reputational exposure for operators

Sustainable cooling technologies to lower water use

To reduce their water footprint, data centre operators are adopting a mix of technology and design changes:

• Liquid cooling: Direct-to-chip or immersion cooling drastically reduces or sometimes eliminates the need for evaporative cooling.
• Air economization: Using outside air when conditions permit to reduce mechanical cooling hours.
• Wastewater reuse: Treating and using greywater or municipal treated effluent for non-potable cooling loops.
• Hybrid systems: Combining chilled-water systems with smart controls to optimize water usage based on ambient conditions.

Policy and industry response

Policymakers and industry bodies are beginning to act. State-level regulations in water-stressed areas now require environmental clearances and water-impact assessments for large industrial projects. At the same time, data centre operators are publishing sustainability targets — from net-zero energy goals to water-efficiency pledges.

Business case for early action

Investing in water-efficient design is not only responsible — it’s strategic. Operators that reduce water dependency gain:

• Lower exposure to regulatory shutdowns or usage limits
• Long-term operational savings from efficient cooling
• Brand differentiation with corporate customers that demand sustainable infrastructure

Practical steps for stakeholders

Policy makers, operators, and communities can work together with clear steps:

• Mandate water-use assessments for new data centre projects in sensitive basins.
• Promote recycled water and incentives for on-site wastewater treatment.
• Encourage technology pilots for liquid cooling and air economization to scale best practices.
• Public–private dialogues to align growth plans with municipal water availability and long-term climate projections.

The path forward

India’s digital future depends on its ability to scale infrastructure responsibly. Data centres are a cornerstone of that future — but water stewardship will determine whether growth is truly sustainable. With smart design, robust regulation, and cooperation between industry and communities, India can build a resilient digital backbone that protects precious water resources.

Want to learn more? Read our resources on sustainable data centre design, or contact our editorial team for insights into best practices and case studies.