Rapid push to become AI data centre hub raises power, water concerns: Economic Survey

India is aiming to position itself as a global hub for data centres, including facilities designed to support artificial intelligence (AI), but the Economic Survey 2025–26 has warned that rapid and unchecked expansion could place heavy pressure on electricity grids and water resources.

“AI data centres are double-edged swords,” the survey said, pointing out that they consume very large amounts of electricity and water. According to the report, a single AI data centre can consume up to 20 lakh litres of water per day, while such facilities together consume around 56,000 crore litres of water globally each year.