India Data Centers Seek Renewable Energy Solutions

India's data center industry is expanding, with operational capacity nearing 2 GW as of early 2026. This growth has increased the need for reliable electricity supply.

Data center operators in India face challenges in balancing rising power costs and client demands for cleaner energy sources. Renewable energy procurement is seen as a way to address both concerns.

India added approximately 130 MW of data center capacity during the first half of 2026, bringing total operational capacity close to 2 GW. This growth is expected to increase the sector's share of national electricity consumption.

Operators can choose from several renewable energy procurement models. One option is open access, which allows them to purchase electricity directly from renewable generators and deliver it via the grid, subject to regulations.

Another model is group captive power, where operators own a stake in a renewable energy project and use the generated electricity. This approach may offer cost benefits if ownership and consumption criteria are met.

For continuous power needs, round-the-clock renewable solutions combine solar, wind, and storage. In August 2026, a tender for 1 GW of such power set a tariff of ₹5.25 per unit.