India's AI Data Centres Face Operational Risks Due to Extreme Heat

Key Facts

• Data centres are facilities that store, process, and distribute digital data via servers, storage, and networking equipment.
• AI and high-performance computing data centres generate significantly more heat than traditional ones due to dense computing hardware and continuous workloads.
• Conventional air cooling is often insufficient for AI data centres; liquid cooling technologies using water or specialized fluids are increasingly adopted for thermal management.
• The Indian Data Center Liquid Cooling Market was valued at USD 166.69 million in 2024 and is projected to reach USD 958.74 million by 2032, growing at a CAGR of 24.58%.
• Risk modeling by XDI has placed planned data centres in Tamil Nadu, Telangana, and Karnataka within the top 30 global regions vulnerable to operational disruption caused by extreme heat.
• Out of 41 new Indian data centres assessed, 12% are high-risk with an expected 269% increase in average damage risk between 2026 and 2100.
• By 2040, nearly 90% of Indian data centres may experience prolonged heat stress, while more than half currently operate where temperatures exceed 35°C for over 90 days a year.
• Bengaluru hosts 31 data centres with two under construction; the expanding cluster exacerbates urban heat island effects, air pollution, noise, and water consumption.
• The urban heat island phenomenon causes built-up areas like Bengaluru to have higher temperatures than surrounding rural areas due to concrete surfaces, reduced vegetation, and waste heat from buildings and vehicles.
• The Government of India launched the National Data Center Mission in April 2025 to develop 100 green-certified data centres focusing on energy-efficient systems, lower emissions, and water-saving cooling technologies.
• India’s AI infrastructure roadmap includes establishing a 5 GW AI infrastructure platform by 2035 and a joint venture with Google for a data centre in Visakhapatnam requiring significant land, electricity, and water resources.

Background & Context

Data centres are critical digital infrastructure underpinning cloud services, banking, telecommunications, and government databases. The increased proliferation of AI and high-performance computing has led to higher heat output, posing considerable challenges for thermal management and operational continuity. Extreme heat events elevate cooling demands, leading to greater electricity consumption and water usage, straining environmental resources and operational expenditures. Urban heat islands in cities with dense data centre clusters, such as Bengaluru, exacerbate local temperature rises, worsening operational risks.

Why This Matters for Exams / Exam Relevance

This topic intersects technology, environmental science, urban studies, and public policy—making it highly relevant for competitive exams covering modern India's technology infrastructure, sustainable development, and climate change adaptation strategies. Exam questions may focus on India's approach to mitigating climate impacts on critical digital infrastructure, the technical challenges in AI data centres, regional vulnerabilities (Tamil Nadu, Telangana, Karnataka), and government initiatives like the National Data Center Mission.

Points to Remember

• AI data centres produce substantial heat, requiring advanced cooling beyond traditional air methods.
• India’s liquid cooling market for data centres is growing rapidly, highlighting technological shifts for thermal management.
• Key states vulnerable to heat-related disruption include Tamil Nadu, Telangana, and Karnataka.
• National Data Center Mission aims to develop 100 green-certified data centres with efficient energy and water use, launched in April 2025.
• Bengaluru's data centre cluster contributes to urban heat island effects, affecting local environment and operational reliability.
• Projected increase in heat-related operational risk is approximately 269% from 2026 to 2100, with 90% of centres facing prolonged heat stress by 2040.