As of September 30, 2025, the world is on the cusp of the artificial intelligence (AI) era, but a significant challenge is emerging – the enormous energy required to power the data centers that underpin this revolution. The AI-driven digital economy is straining power systems globally, with gigawatt-scale data center clusters consuming unprecedented amounts of high-quality power. However, India is uniquely positioned to lead the transition to a sustainable digital economy.
India has an abundance of solar and wind resources, viable pumped hydro storage sites, a robust national grid, and a large pool of engineering and digital talent. These factors give India the potential to become the Data Center Capital of the World, provided it acts with urgency. The global appetite for sustainable digital infrastructure is clear, with companies like Amazon Web Services (AWS) investing in renewable energy to power their data centers.
To unlock this opportunity, India must expand round-the-clock renewable energy tenders, modernize the grid, and incentivize domestic battery storage manufacturing and deployment. The country must also partner with global technology leaders to bring international standards and practices to India. By doing so, India can attract significant foreign investment, create millions of high-quality jobs, and emerge as the most sustainable and cost-competitive hub for data centers globally.
Delivering dispatchable, clean, and affordable power is not only a business imperative but also a strategic and moral responsibility. India has the chance to offer a sustainable pathway to power the digital economy while building prosperity and protecting the planet. With focused policy action and coordinated execution, India can rise to the occasion and lead the global data center race.
The Indian government must take immediate action to capitalize on this opportunity. This includes expanding renewable energy tenders, modernizing the grid, and incentivizing domestic battery storage manufacturing and deployment. By doing so, India can create a sustainable and cost-competitive digital economy that benefits both the country and the world. The time to act is now, and India must seize this opportunity to become a leader in the global data center market.