The Maharashtra state government in western India has approved the establishment of a new large scale sustainable data center project.

The Green Integrated Data Centre Parks project plans to build several data center parks in and around Mumbai, totalling 1.5GW of IT capacity.

NTT Mumbai data center.jpg
NTT's Mumbai data center – NTT

The state is planning to attract investments of upwards of $20 billion for the project, which will support the development of three data center facilities with a capacity of 500MW each in Mumbai and Navi Mumbai.

The state government has mandated that the project use 100 percent green energy for core data center activities.

The state government said in a statement: “With the rapid rise of artificial intelligence (AI), the demand for data storage and processing has surged, leading to increased energy consumption by data centers. This has raised concerns over global warming. In light of India’s goal to achieve carbon neutrality by 2070, green technology has become crucial for the future. Maharashtra’s Green Integrated Data Centre Park will address these concerns by promoting eco-friendly practices in the sector.”

The Indian data center sector has grown significantly over the past 12 months. In September, Princeton Digital Group (PDG) announced plans to expand its data center capacity in Mumbai and Chennai, India.

The expansion will see the firm invest $1 billion in the country and increase the capacity of its India portfolio to 230MW.

The Indian data center market is expected to reach $13.96 billion by 2029, over double its 2023 value of $6.9 billion.