Data Centres and the Risks of 'Dumping'
The article discusses the concept of 'dumping' in global trade, explaining how it can be a legitimate concern when governments enforce policies that favor specific commercial interests over public interest. India has experienced similar situations with its commitments and priorities both nationally and internationally, particularly in the context of energy and environmental goals. Today, data is considered the new oil, and India faces potential risks of being 'dumped' with inefficient data centres that can negatively impact the environment.
Efficient Data Centres
- Data centres should be located where there is reliable power supply and should pay for necessary grid upgrades.
- Design must ensure high utilisation with well-scheduled workloads and efficient cooling systems.
- Use of natural cooling methods where possible, minimizing reliance on potable water, and utilizing recycled water.
- Continuous measurement and optimization of operational parameters are essential.
Real-World Example
- The case of Google's Cerrillos data centre in Chile highlighted environmental concerns related to water stress, leading to a redesign for air cooling instead of water-based cooling.
Potential for 'Data Dumping' in India
India is identified as a significant potential market for data centres with rapid capacity growth projected. However, the risk of 'data dumping' is high due to existing infrastructure and environmental challenges.
- Projected capacity growth includes JLL's 77% increase to 1.8 GW by 2028, CRISIL's forecast of 2.3-2.5 GW by 2028, and Colliers' prediction of surpassing 4.5 GW by 2030.
- Incentives such as fiscal benefits and streamlined approvals enhance India's attractiveness as a data hub.
- Challenges include water stress, power system demands, and environmental regulation weaknesses.
Governance and Community Engagement
To prevent 'data dumping', India can leverage its judicial and civil society structures.
- Signs of poor governance to watch include excessive incentives, lack of transparency, and inadequate zoning and infrastructure planning.
- Require data centres to disclose peak loads, cooling methods, and ensure no undue cost burdens on local communities.
Ultimately, engaging local communities early in the project planning and following strict regulatory measures can prevent negative impacts associated with data centre development.
