Artificial Intelligence – Cross Sector Thematic – AI Infra: Driver of localized power demand / Surging AI Power Demand Hinges on BESS Infra
Published on 11 May 2026
Installed Data Center capacity is projected to scale from ~1.3GW in FY25 to ~4.5GW by FY30, implying an addition of ~3.1–3.2GW over the next five years. Assuming a PUE of ~1.4x and ~70% utilization, data centre power consumption could rise to ~4.4GW by FY30 from 1.3GW in FY25, accounting for ~4% of India’s incremental peak power over FY25–30. The share of DC in power demand is expected to stay at 1.6% by FY30E (upside possible if country adds more capacity). DC build-out remains highly concentrated, with Mumbai/Navi Mumbai and Chennai together accounting for ~60% of existing capacity, and Mumbai emerging as the single largest power-load hub due to hyperscale clustering and submarine cable connectivity. Reflecting this concentration, data centers could account for ~28% of Mumbai’s peak demand by FY30, significantly higher than other key hubs, underscoring a distinctly localized grid impact. Mumbai/MMR-focused utilities such as Adani Energy Solutions, Tata Power could benefit from rising hyperscale data-centre power demand and associated grid Capex.
