By Tirthankar Mitra
KOLKATA: Kolkata is emerging as eastern India’s data hub centre. And this is not announcement of a newly elected political leader but a claim based on 2025 report of Knight Frank India’s India Data Centre Market Update.
India, according to it is poised to become a key artificial intelligence market in the world. And Kolkata will be an integral part of this development makeover. . Based on its findings Kolkata will take its place in the high table of India’s industrial development.
Fact remains that time was when the seating at any high table of industry and commerce was incomplete without the presence of more than one captain of industry from the City of Joy. They took the opportunity to be included in the discussions, contributing ideas and influence decision making in widespread spheres of industry and commerce
After all, Kolkata boasted of the finest corporations in engineering together with the blue chip firms in tea and jute. The industrial conglomeration was too big and cohesive to be overlooked. Sloth and decline had set in over the following decades. But progress too has been achieved though it was not shouted from the roof tops.
The city’s live-data centre capacity has increased nearly six-fold over the past decade. A data centre with a capacity of 13 megawatt is under construction while an 133.4 MW is either committed or in the stages of development.
Investments are flowing in, driven by demand. India’s data-centre capacity could expand to 8.5 times its current level by 2035.It would create a broader eco system of opportunity running into billions. Related sectors, ranging from construction to power systems to networking equipment to cooling technology stand to benefit highly.
The location of the city, its connectivity and its lower cost of living are an advantage when attracting investment. Funding digital infrastructure is no exception. Yet certain factors can not be overlooked by the government, investors and the public at their own peril. Data centres guzzle natural resources.
They ought not to be considered merely as engines of economic growth. They need continuous cooling and use large quantities of water. Studies and industry reports point out that rising temperature will shoot up cooling trends..It would drive up the use of both water and electricity.
Managing the environmental footprints of these data centres would be a challenge. All the more so as the region’s is facing water scarcity and heat stress. Medium data centres need 3,00,000 gallons of water. As for AI focused data centres, they consume 5 million gallons daily.
Thus data centres can make Kolkata bloom economically. They can also lead to a city running dry. These centres need water for evaporative cooling. They are used lest thousands of servers do not get overheated.
These concerns have special significance for Kolkata. It is a climate vulnerable city. Kolkata’s location in the Gangetic delta, its proximity to the Bay of Bengal, high population density and deteriorating natural drainage system raises its vulnerability. It is highly susceptible to flooding, intense heat waves and devastating tropical cyclones.
A study found that land surface temperature around AI data centres rise by an average of 2 degree celcius. Some areas will attract even a higher spike. The city has experienced some of the highest temperature increases globally. This was driven by climate and urban heat island effect.
Kolkata is at a risk of severe heat waves and droughts. Data centres are welcome. But not at the unaffordable cost of irreparably damaging Kolkata’s eco system. A balance has to be struck. Therein lies a challenge. The economic advantages of the data centres cannot be left untapped but sans raising the cost on the environment. Despite these environmental challenges which can be tackled by the experts, the potential of expanding AI data centres is huge in Kolkata with the labour costs being cheapest. That is the advantage which the state government has to market to the domestic as also foreign investors. (IPA Service)
