Power Ministry Plans Grid for Data Centres as Demand Projected to Hit 26 GW by 2032

The Power Ministry of India is undertaking an evaluation of the country's infrastructure readiness to meet the growing electricity demands of data centres.
With internal estimates forecasting a power requirement of 26 GW by 2032 and 35.7 GW by 2040, the ministry is actively engaging stakeholders to discuss the necessary developments as per The Economic Times news report.
Infrastructure Support for Data Centres
Meetings are being held with the Central Electricity Authority, distribution utilities, transmission companies, and data centre developers to ensure adequate power supply and transmission connectivity.
The collaboration focuses on planning the grid and transmission systems required for these centres as their numbers grow across states.
Forecasted Power Demand
The ministry’s internal projections estimate a rising power demand from data centres, reaching 26 GW by 2032 and 35.7 GW by 2040. Efforts to support the states in infrastructure planning are in full swing, aimed at accommodating anticipated projects.
Market Expansion
The data centre market is witnessing robust growth, driven by digital demand and increased infrastructure investments. According to a KPMG report, a $90 billion opportunity is emerging across the data centre value chain by FY35.
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Government's Role in Infrastructure Development
The government has initiated a countrywide exercise to map projected power demand for upcoming data centres, underscoring its commitment to bolstering infrastructure.
The Power Ministry is keen on fostering discussions on enhancing grid and transmission capabilities to meet the accelerating demands of the digital industry.
Conclusion
The Power Ministry is focused on addressing the electricity needs of the expanding data centre market, projecting a need for 26 GW by 2032. The government supports states in infrastructure development, facilitating the market's growth.
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Published on: Jul 17, 2026, 11:45 AM IST

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