A recent report indicates that a significant portion of India's data centers, over 12%, are highly vulnerable to the impacts of climate change. These facilities, which are critical to the functioning of modern digital infrastructure and the artificial intelligence revolution, face increasing threats from extreme weather events such as floods and rising sea levels.
The "2025 Global Data Centre Physical Climate Risk and Adaptation Report" by XDI (Cross Dependency Initiative) analyzed nearly 9,000 data centers globally, including 228 in India, to assess their vulnerability to climate change hazards. The report considered various climate change hazards under a high emissions scenario through the end of the century, categorizing data centers into high, moderate, and low-risk properties.
The report highlights significant regional variations in climate vulnerability across India. Data centers in Uttar Pradesh are identified as being among the most vulnerable in the world, with a staggering 61.9% already considered at high risk. The risk of damage to data center infrastructure in Uttar Pradesh from climate change hazards is projected to more than double (111%) by the end of the century. Other states with data centers at risk include Maharashtra, Telangana (Hyderabad), Karnataka (Bengaluru), and Tamil Nadu (Chennai). In Tamil Nadu, more than 10% of data centers are already at high risk, and over two-thirds are at moderate risk. In Maharashtra, 5.71% of data centers are projected to be at high risk by 2050, with the overall risk of damage more than doubling (133%) by 2100.
These five hubs—Navi Mumbai, Bengaluru, Noida, Chennai, and Hyderabad—are among the world's top 100 most vulnerable to physical climate risk.
The increasing demand from data infrastructure might put additional strain on supplies in India, where many urban areas are already struggling with water scarcity. This would put industry, agriculture, and urban water and energy security at danger.
The vulnerability of data centers to climate change poses a significant threat to India's burgeoning digital economy. The data center industry in India is experiencing remarkable growth, with expansion expected to drive demand for 10 million sq. ft. of real estate space and attract investments worth $5.7 billion. These facilities are the backbone of banking systems, cloud storage, emergency services, communications, and logistics. Disruptions caused by extreme weather events could lead to substantial financial losses and service interruptions.
The report suggests that structural adaptations, such as flood barriers, reinforced materials, and elevation of critical infrastructure, could significantly bolster resilience and reduce the number of high-risk data centers by more than two-thirds by 2050 and decrease moderate-risk facilities by over 70%. The economic implications of these measures are also significant, with the report estimating that the average value-at-risk could be reduced by approximately 0.20% in 2025 and 0.28% in 2050, amounting to $8-11 billion in avoided annual damages. Over a 25-year period, the net present value of these avoided losses could reach $120 billion.
However, structural upgrades alone are insufficient. Data centers are also dependent on surrounding infrastructure, such as power grids, water supply systems, communication lines, and road networks, which are similarly vulnerable to climate risks. The report emphasizes the need for ambitious and sustained investment in emissions reduction to limit the severity of climate change.
To mitigate the impact of climate change on data centers, several strategies can be adopted. These include building smart and sustainable data centers by embedding environmental sustainability from the outset in infrastructure, site planning, energy sourcing, and regulatory governance. Also, green building regulations can provide an impetus to sustainable data centers, which would need to be powered by renewable energy sources and would need proper mechanisms to save water, segregate, and dispose of waste. Furthermore, efficient cooling technologies represent another critical area where government intervention can drive substantial impact.
