Bengaluru's Water Paradox: Data Center Boom Strains Scarce Resources
In a metropolis already grappling with a daily water shortfall, the explosive growth of data centers—the critical physical infrastructure underpinning cloud computing and artificial intelligence—poses a formidable dilemma. How can a city accommodate one of the most resource-intensive forms of digital infrastructure while securing water for its residents? Bengaluru, established as a major data center hub, is on the cusp of significant expansion, intensifying this challenge.
Data Center Concentration and AI Readiness
Karnataka IT Minister Priyank Kharge revealed to TOI that out of 32 operational data centers in the state, a staggering 31 are clustered in Bengaluru. Ten additional facilities are currently in the pipeline, signaling further growth. Beyond these, only a few smaller centers operate in cities like Mysuru, cementing Bengaluru's status as the epicenter.
Key zones illustrate this concentration: Whitefield alone hosts seven major facilities with nearly 120 MW of capacity, featuring large campuses by global operators. Electronics City has branded itself as an AI-ready hub, while Navarathna Agrahara anchors one of the state's largest deployments with a 67.2 MW hyperscale facility. Peripheral areas such as Bidrahalli and Bidadi are emerging as new data center zones. Notably, at least eight centers explicitly market themselves as "AI-ready" or "AI data centers", highlighting the computational intensity they are designed to handle. However, as megawatts of power increase, so do megalitres of water demand.
The Water Consumption Challenge
Data centers consume vast amounts of electricity to power servers and equally significant water for cooling. Most large facilities rely on evaporative cooling systems, where water absorbs heat and evaporates. According to a recent Deloitte study, a 1 MW data center requires approximately 68,500 litres of water daily. A common 20 MW facility, typical for newer AI-focused campuses, would need around 1.4 million litres per day.
This volume is equivalent to the daily water needs of about 27,000 urban households, based on average consumption norms. The paradox is stark: a city struggling to secure drinking water must also allocate cooling water for server farms that power global cloud services.
Bengaluru's Water Scarcity Reality
In many parts of the city, residents track water tanker arrivals like train schedules and budget for water as they would for essential expenses. Daily, Bengaluru requires between 2,600 and 3,000 million litres of water for domestic and industrial use. About 2,000 MLD is pumped from the Cauvery River, with the remainder largely sourced from borewells. A significant portion of the city's 14,000 government borewells have already run dry.
Compounding the strain, nearly a quarter of Cauvery water is lost as unaccounted flow. A BWSSB projection estimates the daily shortfall at 775 MLD, even after Cauvery Stage V becomes fully operational. Residents like Ananthakrishnan Jayaraman in Sadaramangala near ITPL report receiving Cauvery water only in September 2025, relying on costly tankers that can cost up to Rs 4,000 per load during peak summer. Hard water issues have forced many to install softening systems costing up to Rs 1.2 lakh.
Near Electronics City, Kalesh Kumar notes his 210-unit apartment complex depends entirely on tankers, requiring two to three loads daily in summer. Despite laid pipelines, Cauvery water has not yet reached them. "Larger complexes with 2,000 or 3,000 flats would face even greater stress," he said. "Data centers should ideally be located in water-abundant regions, not in a hilltop city."
Hydrological Insights and Policy Gaps
Hydrologist Shashank Palur of Well Labs estimates that data centers consume roughly 26 million litres per megawatt annually. At city-scale capacities, cumulative daily demand could reach tens of millions of litres—equivalent to the needs of over a lakh people. Many facilities turn to groundwater or tanker supply due to the relatively high cost of industrial water from BWSSB.
Palur advocates for a shift to treated water: "Bengaluru has excess treated water that can be reused for cooling, but current incentives prioritize rapid approvals over water sustainability." With capacity expected to double by 2030 and recent tax incentives accelerating growth, he emphasizes that policy must push water-intensive sectors away from freshwater use.
Vishwanath S of Biome Environmental Trust points out that environmental clearances require disclosure of water demand and sources, ideally limiting use to tertiary treated wastewater. "If it is groundwater, that is not sustainable," he stated. Unlike coastal hubs, Bengaluru lacks direct access to submarine cable landing stations and large water sources, compounding infrastructure pressures with its inland geography.
AI Workloads Intensify Cooling Demands
AI workloads exacerbate the challenge, as training clusters pack high-density GPUs that generate significant heat. Cooling them efficiently often requires advanced liquid cooling or enhanced evaporative systems, which can increase water requirements if not managed carefully. Whitefield's nearly 120 MW of installed capacity offers a glimpse of cumulative demand, with even a portion operating at full load implying millions of litres of daily cooling needs.
As operators deploy facilities exceeding 40 MW—the hyperscale threshold associated with global cloud providers—the issue is not whether water demand will rise, but how it will be managed sustainably.
Innovative Solutions and Industry Responses
Some firms are rethinking cooling architecture to address water concerns. Datasamudra's 5 MW facility in Kodigehalli uses air-cooled chillers instead of conventional water-cooled systems, reducing water demand by nearly 70%, according to COO Balaji Rajagopal. "Shifting from water-cooled to air-cooled chillers is only about a 2–3% difference in operational cost, but it gives long-term sustainability benefits," he explained, noting savings of roughly 0.4 million litres of water per day.
The company has also adopted cold aisle–hot aisle containment systems, cooling only server rows instead of entire rooms, improving both energy and water efficiency. Elsewhere in India, a joint venture between Brookfield Infrastructure and Reliance Industries has demonstrated zero-water data center operations using closed-loop air-cooled systems that eliminate evaporative cooling.
Closer to home, Srinivas Varadarajan, CEO and co-founder of Vigyanlabs Innovations in Mysuru, highlighted their sustainable approach: "Traditionally, one relies on water for cooling, needing about two litres of clean water for every kilowatt. We decided to build sustainable infrastructure that uses minimal water."
As Bengaluru's data center footprint expands, balancing technological growth with water sustainability remains a critical imperative for policymakers and industry leaders alike.
