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October 7, 2024

Navigating the Dynamics of Creating Sustainable Data Centers in India

In the quest for a more interconnected world, we have realised that data centers have become essential to our everyday lives. However, their high carbon emissions and energy consumption pose substantial sustainability challenges that need immediate attention.

India’s data centers certainly need a green makeover and Data center providers must think beyond checking compliance boxes. Real sustainability requires a strategic shift in integrating eco-conscious practices into the core operations of data centers and beyond. This article explains why sustainability matters and how to achieve zero energy consumption.

The Imperative of Sustainability in Data Centers

Data centers are critical to the nation’s digital infrastructure and progress. But they are also viewed negatively because of the massive contributions to carbon emissions. As these facilities consume up to 3% of global electricity and emit way more CO2 than the airline industry, the urgency to attain carbon neutrality is well-justified. Additionally, data is only going to multiply in the future, both in terms of criticality and volume This growing demand intensifies the need for adopting sustainable solutions today.

India’s Current Data Center Landscape

India’s data center industry has seen remarkable growth due to the exponential rise in digital activities such as digital payments, e-commerce, and social media. This is especially true in the rural and suburban parts of the country. In 2023, rural India led internet consumption, with 53% (442 million users) online, according to the latest report by IAMAI and KANTAR.
With over 130 data centers, including more than 80 third-party facilities, the industry’s footprint is expanding much more rapidly than expected. By 2025, the country aims to establish itself as a global digital economy with a projected value of $1 trillion. Additionally, predictions suggest that data center investments are expected to reach a whopping $10 billion by 2027.

Integrating ESG Goals into Next-Generation Data Centers

Integrating ESG goals into next-generation data centers is vital for creating responsible and sustainable operations. This approach encircles critical environmental, social, and governance considerations, guaranteeing that data centers not only perform efficiently but also contribute positively to our society and the planet.

1. Environmental Considerations

  • Energy Usage: Addressing the rise in greenhouse gas emissions and energy consumption is paramount. Leveraging energy-efficient solutions, such as renewable energy sources and improving Power Usage Effectiveness (PUE), can significantly reduce the negative environmental impact.
  • Water Usage: With data centers relying heavily on water for cooling, water scarcity risks are highlighted. Implementing closed-loop cooling systems and water recycling can mitigate these issues to promote sustainability.
  • Waste Management: Responsible waste management techniques such as proper inventory and disposal of electronic/chemical waste and other hazardous materials are a must. Compliance with environmental regulations cannot be compromised as it is a must to reduce ecological harm.

2. Social Considerations

  • Safety and Health: Ensuring the well-being and safety of employees and local communities is a crucial aspect of ESG strategies. Comprehensive wellness programs, including mental health resources, healthcare access, and work-life balance initiatives, contribute to a healthier and more productive workforce.

3. Governance Considerations

  • Transparency: Transparent ESG governance is vital. Regularly publishing sustainability reports that adhere to standards like LEED Platinum, ISO, and PCI-DSS helps build trust with stakeholders by openly sharing progress and challenges.
  • Accountability: Effective ESG initiatives require accountability. Integrating ESG metrics into executive performance audits and conducting third-party performance reports for external validation assures that sustainability efforts are credible and truly prioritized.
  • Stakeholder Engagement: Engaging a diverse range of stakeholders, including employees, NGOs, local communities, and industry experts, is necessary. Such an inclusive approach fosters innovation and aligns projects with India’s needs.

Leading by Example

CtrlS is at the forefront of delivering the promise of sustainable, reliable, environmentally conscious, and cost-effective data center solutions. Our emphasis has been on fostering a culture of respect and care for the community, by integrating practices such as stormwater harvesting, solar farming, and paperless office.

The company’s extensive investments in solar projects across Karnataka, Maharashtra, and Uttar Pradesh generate 250,000 MWh of energy annually, eliminating around 225,000 metric tons of CO2. These initiatives are an integral part of our primary objective of achieving Net Zero by 2030, setting high standards in sustainable infrastructure development and environmental stewardship.

ESG beyond paper policies

The convergence of ESG principles and sustainability offers a clear path for data centers to mitigate their negative environmental impact and drive positive change. Promptly addressing water usage, energy consumption, and waste management are important steps in reducing emissions and enhancing overall performance. Prioritizing health, safety, and employee well-being promotes a culture of responsibility within data centers. Effective governance practices, including transparency and accountability, are essential for building trust amongst stakeholders.

As data consumption and technology demand soars, Indian corporations are making significant investments, especially in Tier-2 and Tier-3 cities, to meet the increasing need for data center services. Empowering government policies and rapid digital adoption are driving this expansion, highlighting the integral role of robust data center infrastructure in fostering a sustainable digital future.

By adopting innovative technologies and sustainable practices, India’s data center industry is all set to lead the way in creating a more efficient, greener, and resilient digital economy. The journey toward sustainability is not only an environmental imperative but also a strategic advantage for long-term success in today’s digital age.

Dillip Guru,The author is Senior Vice President, ESG and Renewable Energy, CtrlS Datacenters

Dillip Guru,The author is Senior Vice President, ESG and Renewable Energy, CtrlS Datacenters

The author is Senior Vice President, ESG and Renewable Energy, CtrlS Datacenters. He brings over 30 years of industry experience with a focus on renewable energy, decarbonization, project finance and global strategy. At CtrlS, he is driving renewable energy and sustainability initiatives in the company's pursuit to create better tomorrow.