India’s rapidly expanding data centre sector is expected to increase electricity demand significantly, creating new opportunities for battery energy storage and renewable power solutions.
India has emerged as the largest data centre market in the Asia-Pacific region outside China, with live IT capacity quadrupling over the past six years to reach 1.7 GW, according to a report by BloombergNEF.
The country’s data centre expansion is expected to continue rapidly, with 1.3 GW of capacity currently under construction and another 3.2 GW of projects having secured the land, power and permits required to begin construction.
BloombergNEF said India’s strong energy availability and fibre connectivity are making the country an attractive destination for data centre development. The rapid growth of hyperscale and AI-focused facilities is also expected to significantly increase electricity consumption, strengthening the need for reliable and flexible power infrastructure.
Maharashtra Leads Data Centre Capacity
Maharashtra remains India’s largest data centre market, accounting for approximately 55% of the country’s total live IT capacity. The state also has the largest pipeline of projects that have secured the necessary approvals for construction.
Other states including Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu, Telangana and Uttar Pradesh are expected to play an increasingly important role in the next phase of India’s data centre expansion, with companies announcing major investments across these markets.
Domestic conglomerates have committed approximately $210 billion toward data centre development in India, representing around 45% of total announced investment. Global hyperscalers, including Google, Amazon and Microsoft, account for another $84 billion in announced investments.
According to BloombergNEF, approximately 95% of announced investment is targeting large hyperscale AI campuses, highlighting the growing influence of artificial intelligence workloads on data centre infrastructure.
Rising Power Demand Creates Storage Opportunity
India’s data centre electricity consumption is projected to increase more than eightfold, rising from 11 TWh in 2025 to 91 TWh by 2035, according to BloombergNEF.
As new hyperscale facilities become operational over the coming years, the demand for reliable, uninterrupted electricity will increase. This could create significant opportunities for battery energy storage systems (BESS), particularly for backup power, peak-load management, renewable energy integration and grid balancing.
The growing emphasis on renewable electricity could further accelerate the adoption of energy storage. Many hyperscalers have set net-zero targets for 2030, increasing the need for solutions that can help match renewable generation with round-the-clock data centre demand.
India’s installed electricity generation capacity has grown at a 7.1% compound annual growth rate since 2021 to keep pace with rising electricity demand. However, the rapid expansion of power-intensive AI data centres is likely to place additional pressure on generation and grid infrastructure.
For the battery industry, India’s data centre boom represents an emerging high-value market for BESS, backup power and renewable energy storage, as operators seek greater power reliability while reducing carbon emissions.
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