India's Data Centers Face Climate Heat Threat

India is aggressively seeking data center and AI investments, but a recent global assessment highlights significant climate-related risks. The report from XDI indicates that planned data centers in India face increasing exposure to disruptions from extreme weather and heat.

India is positioned 11th worldwide concerning climate risks for its planned data centers. Notably, Tamil Nadu, Telangana, and Karnataka are identified among the top 30 sub-national regions globally highly susceptible to operational disruptions due to extreme heat.

While the focus has often been on energy and water consumption, physical climate risks are now a critical consideration. Data centers depend on external infrastructure like power grids and transport networks, which can fail during climate events.

This report arrives as insurers increasingly scrutinize climate exposure. The findings underscore the need for India to ensure its burgeoning digital infrastructure is resilient to a hotter, more climate-impacted future.