Best Green Data Centres in India
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As the world’s digital infrastructure expands, the environmental footprint of data centers is drawing increasing scrutiny. India, with its rapidly digitizing economy and growing AI, fintech, and cloud ecosystems, stands at the cusp of a transformative shift—from conventional data centers to green data centers. These sustainable, energy-efficient facilities are no longer just an environmental imperative but a strategic advantage in a highly competitive and regulation-driven digital economy.
Table of Contents
What is a Green Data Center?
A green data center—also known as a sustainable data center—is designed to minimize energy consumption and reduce carbon emissions while maintaining high performance and uptime. These facilities integrate:
- Renewable energy sources such as solar, wind, and hydro
- Advanced cooling systems, including liquid cooling and free-air cooling
- Energy-efficient IT infrastructure
- Intelligent power systems like ECO-mode UPS
- Real-time energy and environmental monitoring tools
The goal is to reduce Power Usage Effectiveness (PUE), typically from an industry average of ~1.67 to as low as 1.10, as seen in leading global data centers. These improvements enable data center sustainability, offering not only environmental benefits but also significant reductions in operating costs (OPEX).
Why Green Data Centers India Are Crucial
1. Escalating Energy Demand
By 2026, global data center electricity demand may hit 1,000 TWh, roughly equivalent to Japan’s entire annual consumption. India, with its digital infrastructure growing at breakneck speed, will be a key contributor. Building energy efficient data centers is the only viable path forward.
2. Tightening Carbon Targets
Data centers currently contribute around 1.5% of global greenhouse gas (GHG) emissions. Improving energy efficiency, shifting to net-zero data centers, and integrating renewable energy in data centers are critical to achieving India’s climate targets and the global 1.5°C goal.
3. Environmental Equity & Health
Traditional, fossil-powered data centers often impact local air and water quality. A sustainable model addresses the public health and environmental equity concerns of local communities while earning trust from policymakers and investors.
4. Cost Optimization & Competitiveness
Lower energy bills and government incentives make sustainable data centers a competitive advantage. Google’s data centers, for instance, operate at a PUE of 1.10, showing how efficiency directly impacts profitability.
5. Regulatory and Investor Pressures
ESG mandates, green certifications (LEED, BREEAM), and climate-conscious investors are reshaping capital flows. Data center operators that meet data center sustainability norms are better positioned for funding and government approvals.
Green Data Centre Market India
Green Data Centers India Market Size and Growth Outlook
The global green data center market was valued at USD 70.6 billion in 2023 and is projected to reach USD 307.5 billion by 2032, growing at a CAGR of 18–19%.
The green data centre market in India was estimated USD 1.095 billion in 2024, while the Indian green data centre market is expected to reach USD 4.32 billion by 2030 at a CAGR of ~25.7%
India’s installed data center capacity is expected to increase from ~950 MW in 2024 to 1.8 GW by 2026, driven by:
- Data localization laws (e.g., DPDP Act)
- Surging AI, fintech, and cloud demand
- Rising smartphone and IoT penetration
- Cost-efficient real estate and labor
- National green energy transition plans
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Best Green Data Centres in India
India’s transition to green data centers is being spearheaded not just by hyperscalers but also by energy and infrastructure companies building the foundational technologies. Below are five best Green Data Centres in India reshaping India’s data infrastructure with a sustainability-first lens.
Top 5 Green Data Centre Companies
Green data centres are trending across the globe now, it is time for India to focus on this segment in this industry. Here are the best Green Data Centres in India or the companies that support green data centres in India.
1. NTPC Limited: Powering India’s Green Backbone
NTPC, India’s largest power generator, is leading the country’s clean energy transition. Through its subsidiary NTPC Green Energy Ltd (NGEL), the company is aggressively building renewable energy capacity to power industrial and digital infrastructure, including green data centers. Though the company has not yet directly engaged in green data center market, it is strongly supporting green data centre initiative in India.
Key Highlights:
- Target: 60 GW renewable capacity by 2032
- As of 2024: 3.6 GW installed, 11 GW under construction, 20+ GW in pipeline
- Energy Mix Shift: 60:40 fossil vs. non-fossil fuels by 2032
NTPC’s expanding solar, wind, and hybrid infrastructure forms the energy spine for sustainable digital infrastructure in India. While not a direct data center operator, NTPC is a critical enabler in creating renewable energy-powered data centers.
2. E2E Networks: Cloud-Native, AI-Optimized, and ESG-Aware
E2E Networks Ltd, listed on the NSE, is a cloud-first company offering GPU-accelerated computing for AI/ML, data science, and high-performance workloads—all hosted within Indian green data center market.
While not a data center owner, E2E relies on colocation providers, making it strategically dependent on green-certified infrastructure partners.
Sustainability Potential:
- Partners with LEED-certified or renewable-powered data centers
- Offers cloud-native optimization to reduce energy per GPU cycle
- Could track carbon footprints of AI workloads to meet enterprise ESG goals
E2E has the potential to become India’s first ESG-aligned AI cloud platform, provided it secures green partnerships and transparent reporting tools.
3. RailTel Corporation of India Ltd: Decentralized & Energy Efficient
A Mini Ratna PSU, RailTel is leveraging its railway land and nationwide fiber optic network to build decentralized, low-latency green data centers.
Major Green Initiatives:
- 102 Edge Data Centers planned across Tier 2/3 cities
- A new hyperscale-capable data center in Noida via PPP model
- ₹250 crore capex for expanding cloud, cybersecurity, and data center infra
- Energy-efficient Tier-III certified facilities with RailCloud integration
With its unique edge-first architecture, RailTel is transforming from a railway telco into a national digital infrastructure provider for sectors like defense, smart cities, and healthcare.
4. Bajel Projects Ltd: Building the Power Highways for Data
Demergered from Bajaj Electricals in December 2023, Bajel Projects Ltd is a specialized EPC player in power transmission and substations, both vital to data center sustainability.
Strengths:
- ₹2,629 Cr revenue in FY25; ₹2,984 Cr order book
- High-voltage substations (400–765 kV) suitable for hyperscale projects
- Large manufacturing base in Pune for modular components
- Actively targeting data center and energy storage under “Sunrise Sectors”
Though not a direct operator, Bajel enables green power access and redundancy—key for energy-efficient green data centres India.
5. Marine Electricals: Electrifying the Green Edge
Marine Electricals is a specialist in electrical automation, power distribution, and monitoring systems for hyperscale and colocation data centers.
Key Contributions:
- Supplies green-certified power systems to major data center clients
- Certified under ISO 14001 (environmental management)
- Active in EV charging and clean tech projects via Evigo Charge Pvt. Ltd.
- Provides intelligent monitoring for PUE optimization and fault prevention
Marine Electricals is a green technology enabler that enhances the operational sustainability of India’s leading data centers.
Enabling Technologies: Liquid Cooling, AI & Modular Builds
To achieve net-zero data centers, India’s ecosystem is rapidly adopting:
- Liquid Cooling for Data Centers: More efficient than air cooling, reducing energy use by up to 30–40%
- AI-Powered DCIM (Data Center Infrastructure Management): Real-time monitoring and load balancing for maximum energy savings
- Prefabricated Modular Data Centers: Faster deployment, localized cooling, and space efficiency
- On-site Solar + Battery Storage: Providing resilience and green power access in remote areas
Government Support & Policy Enablers
The Indian government is actively promoting data centers sustainability through green data centres India initiatives:
- Draft National Data Centre Policy: Emphasizing green building codes, energy audits, and renewable sourcing
- PLI Scheme for Electronics and IT Hardware: Incentivizing domestic, energy-efficient IT equipment manufacturing
- MeitY Empanelment & LEED Mandates: Green compliance requirements for public cloud and government data centers
State governments in Uttar Pradesh, Tamil Nadu, Maharashtra, and Karnataka have announced data center-specific policies that include energy subsidies, land allotment, and tax incentives for sustainable data centers.
The Road Ahead: Green Data Centers India
Sustainability is not a trend—it is a survival strategy for the digital economy. As hyperscalers, governments, and digital-first enterprises demand cleaner infrastructure, India’s pivot to green data centers is accelerating.
The next wave of digital transformation will hinge on:
- Seamless integration of renewable energy in data centers
- Deployment of AI-enabled energy optimization tools
- Transparent carbon reporting for every terabyte processed
- Decentralized, edge-focused modular green data centers across Tier 2 and Tier 3 towns
Final Thoughts on Green Data Centers India
India’s green data center market is poised for exponential growth, driven by regulation, economics, and climate urgency. Whether through public-sector pioneers like NTPC and RailTel, tech innovators like E2E, or infrastructure enablers like Bajel and Marine Electricals, the momentum is clear.
Investors, policymakers, and enterprises must now align to ensure that India’s digital future is not just fast—but green, sustainable, and equitable.