India is riding a thrilling wave of growth in its data centre sector, powered by the explosive rise of artificial intelligence (AI). Data centres are huge facilities housing computer servers and network gear. They keep our digital world running—from ChatGPT chats to streaming movies and electric cars. Last month, Google dropped a jaw-dropping $15 billion investment to build its biggest AI data centre ever in Andhra Pradesh, showing just how hot this sector is getting. Big global players like Amazon Web Services, Meta, and Indian giants like Reliance are all pouring billions into India's data centre market. Even luxury real estate developers want in on the action! According to global consultancy JLL, India's data centre capacity will explode by 77% by 2027, reaching 1.8 gigawatts. By 2030, up to $30 billion might be spent on expanding these tech powerhouses. What's driving this mad rush? India generates 20% of the world's data but only has 3% of global data centre capacity. India's internet and mobile use are booming, the government insists data be stored locally, and AI like ChatGPT demands massive computing power. In fact, India is expected to consume more data than the US, Europe, or China by 2028. Plus, setting up data centres is cheaper here. Kotak Research says India offers some of the lowest development and electricity costs globally, with world-class tech talent ready to fuel growth. Vibhuti Garg from the Institute for Energy Economics and Financial Analysis told the BBC, "Just like we exploited the IT services boom through the 90s and 2000s, this is another opportunity that we can use to our advantage." But this boom brings serious risks. Data centres gulp huge amounts of water for cooling and devour tons of energy. India, holding 18% of the world's population, painfully has only 4% of its water resources — making water a precious treasure. By 2030, India's data centres could suck up 358 billion litres of water, more than doubling from 2025 levels, pushing already stressed water supplies to the brink. Most centres cluster in water-hungry cities like Mumbai, Hyderabad, Chennai, and Bengaluru, where locals compete fiercely for water. Alarm bells are ringing. Activists like the Human Rights Forum warn that Google's Andhra Pradesh project could worsen water shortages in Visakhapatnam. Though Google claims it carefully checks water risks using a "peer-reviewed context-based water-risk framework," experts say water use is a blind spot in India's data centre policies. Sahana Goswami from the World Resources Institute warns, "60-80% of India's data centres will face high water stress this decade," which might cause shutdowns impacting banking, hospitals, transit systems, and more. Experts urge innovation: recycling treated waste water, pursuing zero-water cooling tech, and choosing data centre locations in low-stress water basins. Praveen Ramamurthy from the Indian Institute of Science says, "Non-potable or treated water must be made mandatory for cooling needs." Energy is another big worry. According to the International Energy Agency, data centres' electricity use in India may double to 1-2% of national power demand. Without rules to enforce renewable energy use, this could mean more fossil fuel burn. "Mandating clean energy use" is key to making this growth eco-friendly, Ms Garg adds. India is on a tightrope, balancing a dazzling digital future with protecting its fragile environment. As Ms Garg sums it up, "In the end, we need to ensure that one good is not sacrificed for another."