Minister flags environmental costs involved in setting up data centre

Karnataka to review data centre policy amid environmental concerns over water and energy use.

Amid concerns over environmental costs, particularly water and energy consumption, Karnataka is reviewing its policy on data centres, IT/BT Minister Priyank Kharge informed the State Legislative Assembly on Wednesday.

Explaining the costs involved in establishing data centres, Mr. Kharge said around ₹70 crore is required to set up one megawatt data centre, and the total power usage, including cooling/infrastructure, is about 1.7 MW of power. About 25 million litres of water per year is required for one MW data centre. However, the actual cost depends on the location and land cost, sources said.

However, he noted that new technologies are emerging that enable the use of treated water in data centres. “We have to relook at our policy, which is 2 to 3 years old,” he said

Replying to a question from Dheeraj Muniraju of the BJP from Doddaballapur, Mr. Kharge said that 32 private data centres are currently functioning in the State. “We already have a data centre policy, which we are reviewing,” he added.

Describing data centres as a “necessary evil", the Minister said they are essential for artificial intelligence, machine learning and other emerging technologies, but they also consume large quantities of water and energy.

Earlier, Mr. Muniraju said Bengaluru was losing out on data centre investments as companies were moving to other Indian cities. Bengaluru currently ranks fifth among Indian cities for data centres, after Mumbai, Hyderabad, Chennai and Delhi, he said.