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					</table><p>The U.S.’s electricity demand for data centers has tripled over the last decade. It is expected to further double or triple by 2028, according to the report published by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (<a href="https://www.lbl.gov/" target="_blank" rel="noopener">Berkeley Lab</a>).</p>
<p>The report examines the energy use of U.S. data centers, including servers, storage, network equipment, and infrastructure, between 2014 and 2028.</p>
<p>The report notes that data centers consumed approximately 4.4% or 176 TWh of the total U.S. electricity in 2023 and are projected to consume approximately 6.7% to 12% or 325 TWh to 580 TWh by 2028.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc1-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-74788 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc1-1.png" alt="" width="647" height="455" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc1-1.png 647w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc1-1-300x211.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc1-1-624x439.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc1-1-600x422.png 600w" sizes="(max-width: 647px) 100vw, 647px" /></a></p>
<p>The report was written to meet the <a href="https://www.directives.doe.gov/ipt_members_area/doe-o-436-1-departmental-sustainability-ipt/background-documents/energy-act-of-2020" target="_blank" rel="noopener">Energy Act of 2020</a> requirements, which mandate that the Department of Energy update the Berkeley Lab’s 2016 data center energy usage study. The original report considered the data center electricity usage from 2000 onwards.</p>
<p>The updated analysis adds to the 2016 report using the bottom-up approach. This method involves collecting specific data on the types of IT equipment in data centers. It is considered accurate because it involves careful data collection and detailed modeling by experts.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-74789 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc2-1.png" alt="" width="732" height="491" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc2-1.png 732w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc2-1-300x201.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc2-1-650x436.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc2-1-624x419.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc2-1-600x402.png 600w" sizes="(max-width: 732px) 100vw, 732px" /></p>
<p>Electricity consumption by U.S. data centers shows a compound annual growth rate of approximately 7% from 2014 to 2018, increasing to 18% between 2018 and 2023 and then ranging from 13% to 27% between 2023 and 2028.</p>
<p>Energy consumption by data centers was approximately 60 TWh between 2014 and 2016. By 2018, it increased to 76 TWh, driven by the growing use of GPU-accelerated servers for AI-based tasks. These technologies are anticipated to further drive energy demand in the future.</p>
<p>Servers’ operational time depends on their type and location. Conventional servers in smaller or internal data centers were utilized 11% of the time in 2014, rising to 20% by 2027. Server usage in co-location data centers increased from 21% to 35%. Hyperscale data centers grew from 45% in 2014 to 50% in 2027.</p>
<p>AI servers used for training operated at an 80% operational time. These servers operated consistently at 40% while used for inference.</p>
<p>Training server usage from 2024 to 2028 may vary between 75% and 85% and inference server utilization between 37.5% and 42.5%, reflecting possible future changes in usage patterns.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-74790 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1.png" alt="" width="662" height="482" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1.png 662w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1-300x218.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1-650x473.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1-624x454.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/12/dc3-1-600x437.png 600w" sizes="(max-width: 662px) 100vw, 662px" /></a></p>
<p>This surge in data center electricity demand should be understood in the context of the much larger electricity demand expected over the next few decades from a combination of electric vehicle adoption, onshoring of manufacturing, hydrogen utilization, and the electrification of industry and buildings.</p>
<p>The report observes that the server cooling systems add to the data centers’ electricity usage.</p>
<p>The report recommends using new efficiency strategies, including further decarbonization of the power sector, to mitigate the environmental impact of the data centers’ rising energy demands.</p>
<p><span style="font-weight: normal !msorm;"><strong>Renewable Energy Usage</strong></span></p>
<p>The report noted that the data center industry has shown interest and leadership in implementing real-time renewable energy and zero-carbon power, including battery storage resources. Future research efforts should include working with utilities and data center companies to develop strategies that can quantify the potential costs and benefits of investing in large-scale, customer-driven renewable energy projects and new firm clean power, including scalable nuclear generation.</p>
<p>The Berkeley Lab report said, “Research initiatives are needed not just to identify strategies to meet data centers’ future energy needs but also to help stakeholders use this relatively near-term electricity demand for data centers as an opportunity to develop the leadership and a foundation for an economy-wide electricity infrastructure expansion,” the report said.</p>
<p>A report by the International Energy Agency <a href="https://www.mercomindia.com/clean-power-outpace-global-electricity-iea" target="_blank" rel="noopener">noted</a> that data centers are now among the most active purchasers of clean electricity through power purchase agreements. Companies like Amazon, Meta, Alphabet, and Microsoft led the way in sustainable energy use for their data center operations.</p>


US Data Center Electricity Demand Could Triple by 2028: Berkeley Lab


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					</table><p><a href="https://www.mercomindia.com/enabling-policies-drive-rajasthans-solar-open-access-projects-in-q1-2024" target="_blank" rel="noopener">According to Mercom India’s Q1 2024 Solar Open Access Market Report, India added 1.8 GW of solar open access capacity in Q1 2024</a>, with Rajasthan leading with almost 28% of the quarter’s installations. Rajasthan’s capacity additions were up 154.1% quarter-over-quarter, making it one of the top five states for solar open access. The state’s cumulative installed solar open access capacity rose 65.9% between Q4 2023 and Q1 2024. In Q1 2024, about 13.7% of the large-scale solar installations in the state were in the open access model. Open access solar installations in Rajasthan accounted for 8.8% of India’s cumulative capacity.</p>
<p><a href="https://www.mercomindia.com/data-centers-drive-demand-for-renewable-energy" target="_blank" rel="noopener">With over 880 million internet users and a thriving tech sector, India’s data center industry has seen explosive growth in recent years</a> and is poised to accelerate with the advent of artificial intelligence. This expansion, however, comes with a significant electricity demand, straining the country’s already stressed power grid. Power demand from data centers in India grew at 4.4% year-on-year to reach 139 billion kWh in June 2023, according to Rohan Sheth, Vice President, Colocation &amp; DC Build at data center company Yotta. Meanwhile, the International Energy Agency (IEA) estimates that by 2030, data centers alone will consume about 8% of total energy globally. Data centers currently consume about 1-1.5% of global energy and contribute to 0.3% of global emissions.</p>
<p><a href="https://www.mercomindia.com/central-electricity-authority-approves-2600-mw-pumped-storage" target="_blank" rel="noopener">The Central Electricity Authority (CEA) has approved two pumped hydro storage projects (PSPs)</a> with a cumulative capacity of 2,600 MW. The Power Ministry said the CEA approved the two projects in record time. The approved PSPs were the 600 MW Upper Indravati project in Odisha, which is being developed by the Odisha Hydro Power Corporation, and the 2,000 MW Sharavathy project in Karnataka, which Karnataka Power Corporation is developing. The Power Ministry said that the CEA had received proposals for PSPs with a total capacity of 60 GW to prepare detailed project reports.</p>
<p><a href="https://www.mercomindia.com/cea-seeks-stakeholder-inputs-planning-guidelines" target="_blank" rel="noopener">CEA has released a draft amendment to the “Manual on Transmission Planning Criteria, 2023.”</a> The document, effective from April 1, 2023, outlines the planning procedures and criteria for developing the electricity transmission system in India. The amendment introduces a new chapter detailing the procedures for planning electric power transmission systems and updates parameters for certain conductors. The amendment aims to enhance the planning and development of India’s electricity transmission system. The amendment seeks to ensure a reliable, efficient, and economical transmission network that meets the power sector’s growing demands.</p>
<p><a href="https://www.mercomindia.com/bengaluru-apartment-complex-adopts-solar" target="_blank" rel="noopener">A residential apartment complex in Bengaluru is saving up to ₹4 million (~$47,768) annually by installing a rooftop solar system</a>. By switching to clean energy, the condominium with 1,030 flats has reduced its electricity expenses by 33%. Leveraging the power of solar energy, the SNN Raj Greenbay apartment complex in Electronic City Phase 2 has set up a 342 kW residential rooftop system, which it claims is the second-largest in the city. Before installing the rooftop solar systems, residents were collectively incurring ₹1 million (~$11,942) in electricity expenses and an estimated ₹12 million (~$143,305) annually.</p>
<p><a href="https://www.mercomindia.com/rec-land-due-diligence-solar-project" target="_blank" rel="noopener">REC Limited has invited bids to engage lenders’ legal counsel to carry out the land due diligence of 603 acres of land offered by Adani Solar Energy RJ Two</a> as security to finance its project. REC has approved financial assistance of ₹6.81 billion (~$81.32 million) to Adani Solar Energy RJ Two to commission a 150 MW solar power project in Jodhpur, Rajasthan. Adani Solar must create a mortgage over the project lands to secure this loan. The last day to submit the bids is August 7, 2024. Bids will be opened on the same day. The duration of the assignment is two months from the date of award or an extended period at the sole discretion of REC.</p>
<p><a href="https://www.mercomindia.com/shakti-solar-pumps-uttar-pradesh" target="_blank" rel="noopener">Shakti Pumps has received a letter of intent from the Uttar Pradesh Department of Agriculture to supply, install, and commission 12,537</a> pumps under Component B of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Program (Phase-III). Shakti Pumps must execute the work by March 31, 2025. The total work order value is approximately ₹5.58 billion (~$66.62 million).</p>


Daily News Wrap-Up: Rajasthan Led Solar Open Access Installations in Q1


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					</table><p>With over 880 million internet users and a thriving tech sector, India&#8217;s data center industry has seen explosive growth in recent years and is poised to accelerate with the advent of artificial intelligence. This expansion, however, comes with a significant electricity demand, straining the country&#8217;s already stressed power grid.</p>
<p>Power demand from data centers in India grew at 4.4% year-on-year to reach 139 billion kWh in June 2023, according to Rohan Sheth, Vice President, Colocation &amp; DC Build at data center company <a href="https://yotta.com/" target="_blank" rel="noopener">Yotta</a>.</p>
<p>Meanwhile, the International Energy Agency (<a href="https://www.iea.org/energy-system/buildings/data-centres-and-data-transmission-networks" target="_blank" rel="noopener">IEA</a>) estimates that by 2030, data centers alone will consume about 8% of total energy globally. Data centers currently consume about 1-1.5% of global energy and contribute to 0.3% of global emissions.</p>
<p><strong>A Booming Industry</strong></p>
<p>&#8220;The Indian data center market has grown from 2.7 million square feet in 2017 to 11 million square feet in 2023,&#8221; said Sheth of Yotta, adding that capacity has increased by 100 to 150 MW annually in recent years, reaching nearly 900 MW by 2023.</p>
<p>This growth shows no signs of slowing, with projections suggesting India&#8217;s data center capacity could cross 1,800 MW by the end of 2026.</p>
<p>&#8220;The country boasts a substantial capacity of approximately 950 MW, surpassing other major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea. It is further set for significant expansion with an anticipated addition of around 850 MW between 2024 and 2026,&#8221; said Prashant Goyal, Head of Data Centre Practice at <a href="https://www.cbre.co.in/" target="_blank" rel="noopener">CBRE-India</a>.</p>
<p>Several factors are driving this expansion, according to Xavier Surentherathas, Senior Director, APAC Channel Sales at <a href="https://www.parkplacetechnologies.com/" target="_blank" rel="noopener">Park Place Technologies</a> – a data center maintenance firm. Global cloud providers like <a href="https://aws.amazon.com/" target="_blank" rel="noopener">Amazon Web Services</a>, <a href="https://azure.microsoft.com/en-us" target="_blank" rel="noopener">Microsoft Azure</a>, and <a href="https://cloud.google.com/" target="_blank" rel="noopener">Google Cloud</a> are increasing their presence in India to meet the rising demand for cloud services. Government initiatives, such as granting infrastructure status to data centers and introducing supportive policies, have also played an important role.</p>
<p>&#8220;The enactment of the Digital Personal Data Protection Act in 2023 has promoted secure cross-border data exchange, lawful data processing practices, and heightened confidence among stakeholders,&#8221; said Goyal.</p>
<p><strong>The Energy Challenge</strong></p>
<p>This rapid growth, however, comes with a significant energy demand. Data centers currently account for about 2% of India&#8217;s total power consumption, a figure that is expected to rise, said Surentherathas.</p>
<p>&#8220;Data centers, by nature, consume large amounts of energy given the IT infrastructure they run and support,&#8221; said Sheth.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-68762 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/08/Screenshot-2024-07-29-125006.png" alt="Data Centres IEA" width="688" height="352" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/08/Screenshot-2024-07-29-125006.png 688w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/08/Screenshot-2024-07-29-125006-300x153.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/08/Screenshot-2024-07-29-125006-650x333.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/08/Screenshot-2024-07-29-125006-624x319.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/08/Screenshot-2024-07-29-125006-600x307.png 600w" sizes="(max-width: 688px) 100vw, 688px" /></p>
<p>Currently, most of India&#8217;s electricity is <a href="https://www.mercomindia.com/india-third-solar-power-producer" target="_blank" rel="noopener">derived</a> from coal, which contributes around 75% of the country&#8217;s power generation. This heavy reliance on fossil fuels poses a challenge to the sustainability of the data center industry, but companies have set ambitious targets to procure more from renewable sources, driving up demand for clean energy.</p>
<p>For instance, CBRE aims to transition its corporate operations to 100% renewable energy by the end of 2025. &#8220;Currently, we are working towards meeting our energy demands with a balanced approach between fossil fuels and renewables, with a clear focus on increasing the percentage of renewable sources over time,&#8221; said Goyal.</p>
<p>Earlier this year, telecommunications service provider <a href="https://www.airtel.in/" target="_blank" rel="noopener">Bharti Airtel</a>&#8216;s data center subsidiary <a href="https://www.nxtra.in/" target="_blank" rel="noopener">Nxtra</a> said it would <a href="https://www.mercomindia.com/airtel-nxtra-procure-clean-energy-data-centers" target="_blank" rel="noopener">procure</a> 140 GWh of renewable energy annually for its data centers in Tamil Nadu, Uttar Pradesh, and Odisha. The company partnered with <a href="https://ampin.energy/" target="_blank" rel="noopener">AmpIn Energy</a> and <a href="https://amplussolar.com/" target="_blank" rel="noopener">Amplus Energy</a> to set up captive solar and wind power projects totaling 72.3 MW<sub>dc</sub> capacity to power its data centers under 25-year agreements.</p>
<p><a href="https://www.adaniconnex.com/" target="_blank" rel="noopener">AdaniConneX</a>, a data center solutions provider and a joint venture between <a href="https://www.adanienterprises.com/" target="_blank" rel="noopener">Adani Enterprises</a> and <a href="https://www.edgeconnex.com/" target="_blank" rel="noopener">EdgeConneX</a><u>, raised $1.44 billion earlier this year</u> to fund its renewable energy-powered data centers. The company plans to <a href="https://www.mercomindia.com/adaniconnex-green-financing-data-centers" target="_blank" rel="noopener">build</a> an environmentally and socially conscious 1 GW data center infrastructure platform.</p>
<p>Last year, Akhil Agarwal, Senior Director, Power Management, <a href="https://www.sttelemediagdc.com/" target="_blank" rel="noopener">ST Telemedia Global Data Centres</a> (STT GDC), had told Mercom in an interview, “Our facility load is 400 MW across 21 operational data centers in 10 Indian states. We are adding 1-2 data centers every year.”</p>
<p>According to its ESG report, renewable energy accounted for 62.5% of STT GDC’s electricity consumption in 2023, far earlier than its target to achieve 60% by 2026. The company is sourcing renewable electricity through onsite installations, green tariffs, power purchase agreements, energy attribute certificates, and offsets.</p>
<p>A developer told Mercom that his company recently commissioned three solar projects in Uttar Pradesh, where <a href="https://www.ctrls.com/">CtrlS</a> procures power to operate its data centers. The developer has also signed contracts with other Karnataka and Andhra Pradesh data center companies.</p>
<p>&#8220;The data center market requires huge capacities of power. Overall, the market size of data centers is roughly 8 GW by 2025, and by 2030, we require 20 GW of solar power for data centers,&#8221; he said.</p>
<p>&#8220;Several data centers powered by alternative sources stand as leading Indian examples, with over half of their power currently derived from renewable energy sources. A fully 100% contained solar-powered data center is currently under construction in Uttar Pradesh. A new captive solar power plant is being developed to meet the energy requirements of other new core and edge data centers in the state,&#8221; said Surentherathas.</p>
<p><strong>Impact of Artificial Intelligence</strong></p>
<p>According to the IEA, a single ChatGPT query uses 2.9 watt-hours of electricity compared to 0.3 watt-hours for a Google search, underscoring the energy-intensive nature of large language-based models that underpin artificial intelligence in use today.</p>
<p>Meanwhile, Goldman Sachs Research projects that AI will increase data center power consumption by 200 TWh annually between 2023 and 2030, with AI accounting for about 19% of data center power demand by 2028.</p>
<p><strong>Sustainability Initiatives</strong></p>
<p>Electricity demand in data centers primarily comes from two main processes: computing and cooling. Computing accounts for about 40% of a data center&#8217;s electricity demand, while cooling, necessary to maintain stable processing efficiency, also makes up approximately 40%. The remaining 20% is used by other associated IT equipment.</p>
<p>Integrating renewable energy can help reduce a data center&#8217;s carbon footprint and increase energy efficiency. Companies are focusing on improving Power Usage Effectiveness (PUE), a key metric for energy efficiency in data centers.</p>
<p>Yotta, for example, reports a PUE of 1.4, which is considered good for a tropical climate like India&#8217;s.</p>
<p>STT GDC reports that in 2023, their operating PUE was 1.5 compared to 1.66 in 2020.</p>
<p>Advanced cooling technologies, such as liquid immersion and adiabatic chillers, are also being deployed to reduce energy consumption for cooling, a major power draw in data centers, according to the companies Mercom spoke to.</p>
<p>Some operators are also exploring ways to capture and reuse excess heat generated by data centers, potentially providing a renewable energy source for nearby buildings or industries.</p>
<p>Ravichandran Purushothaman, President of <a href="https://www.danfoss.com/en-in/" target="_blank" rel="noopener">Danfoss India</a>, emphasizes the potential for heat reuse. &#8220;By harnessing excess heat, we&#8217;re not only reducing energy consumption but also creating a reliable source of clean energy.&#8221;</p>
<p>The company recently partnered with <a href="https://www.hpe.com/us/en/home.html" target="_blank" rel="noopener">Hewlett Packard Enterprise</a> to deliver an off-the-shelf heat recovery module to help it manage and value excess heat.</p>
<p>Despite these efforts, challenges remain. Industry experts pointed out several barriers to renewable energy adoption, such as the intermittency of renewable sources like solar and wind, as data centers require an uninterrupted power supply. They also said that current regulations do not allow data centers to bank excess power generated during peak times for use during non-peak periods.</p>


Power-Hungry Data Centers Drive Demand for Renewable Energy in India


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					</table><p>Telecommunications service provider <a href="https://www.airtel.in/" target="_blank" rel="noopener">Bharti Airtel</a>’s data center subsidiary <a href="https://www.nxtra.in/" target="_blank" rel="noopener">Nxtra</a> will procure 140 GWh of renewable energy every year for its data centers in Tamil Nadu, Uttar Pradesh, and Odisha.</p>
<p>The company has partnered with <a href="https://ampin.energy/" target="_blank" rel="noopener">AmpIn Energy</a> and <a href="https://amplussolar.com/" target="_blank" rel="noopener">Amplus Energy</a> to set up captive solar and wind power projects totaling 72.3 MW<sub>dc</sub> capacity to power its data centers under 25-year agreements and reduce carbon footprint by around 99,547 tonnes of carbon dioxide equivalent (CO2e) per year.</p>
<p>“The additional clean energy supply will increase our renewable energy share to approximately 70% in the overall energy mix for our core data centers. As we work towards building more capacity in coming years and gear up for Generative AI-powered loads, we are fully cognizant of our responsibility towards the environment and are prepared to mitigate the impact on climate,” said CEO Ashish Arora in a statement.</p>
<p>Nxtra’s data center in Tamil Nadu will be powered by 24.3 MW wind and 28 MW<sub>dc</sub> solar projects built in partnership with Amplus Energy. The company said it will result in about 77,957 tonnes of CO2e emissions reduction every year.</p>
<p>In Uttar Pradesh, a 12 MW<sub>dc</sub> solar project will be built in partnership with AmpIn Energy, resulting in an annual reduction of about 12,694 tonnes of CO2e emissions. As for Odisha, Ampln Energy will build an 8 MW<sub>dc</sub> solar project, which will reduce emissions of about 8,896 CO2e annually.</p>
<p>Nxtra has 12 large and 120 edge data centers across India.</p>
<p>Last year, the company said it would <a href="https://www.mercomindia.com/airtels-data-center-renewable-power-in-fy24" target="_blank" rel="noopener">purchase</a> 23,000 MWh of renewable energy by the fourth quarter of the financial year 2023-24 through the open access route, where Airtel will invest in Continuum Green’s project company, ensuring a sustainable supply of green power from solar and wind energy projects to Nxtra’s Edge data centers in Madhya Pradesh.</p>
<p>In 2022, Nxtra said it has <a href="https://www.mercomindia.com/nxtra-partners-bloom-energy-deploy-fuel-cell" target="_blank" rel="noopener">partnered</a> with solid-oxide fuel cell manufacturer Bloom Energy to deploy a low-environmental impact fuel cell installation at its data center in Karnataka. The company claimed it would be the first Indian data center to deploy fuel cell technology to mitigate carbon emissions through a cleaner, hydrogen-ready fuel supply.</p>


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