1 India’s data center geography: coastal vs inland

India’s first wave of large data centers has been concentrated in coastal and metro clusters such as Mumbai, Navi Mumbai, Chennai, Hyderabad, Bengaluru and Delhi NCR. These locations offer subsea cable landings, strong network ecosystems and proximity to financial and digital customers, which reduce latency and support high value workloads.

Recent market coverage also notes a growing push towards inland and Tier 2 cities where land is cheaper and power is more available. Operators are exploring regions in central and northern India for edge data centers and AI ready campuses that can operate at lower cost while still meeting latency and data localisation requirements.

For owners, this creates a choice between coastal and inland sites, with very different water, power and land profiles. Getting these trade offs right early is critical for long term operating costs, ESG performance and community acceptance.

2 Coastal cities: water proximity, power demand and limited land

Coastal cities such as Mumbai and Chennai are natural locations for data centers because they host subsea cable landing stations and strong carrier ecosystems. This makes them attractive for cloud regions, financial trading platforms and content distribution that depend on international connectivity and low latency.

However, coastal hubs also come with significant water, power and land challenges:

• Water stress and cooling. Many coastal metros already face seasonal water shortages and compete for water between residential, industrial and agricultural users, even as high density data centers require continuous cooling.
• Grid loading. Clusters of large facilities place heavy loads on urban grids, which may require new substations and transmission upgrades to maintain reliability during peak demand.
• Land scarcity and cost. Limited land parcels and high prices push operators toward vertical designs, brownfield sites and complex construction logistics.

Neutral articles from mainstream and environmental media have already documented tensions around water use and power demand for coastal data centers in India. These reports increasingly call for low water cooling, use of treated wastewater and more transparent reporting of water and energy usage.

3 Inland cities: cheaper land, evolving grids and water risks

Inland cities and heartland regions are now emerging as alternative locations for data centers and AI infrastructure in India. Media reports describe operators choosing sites in central and northern states where land is cheaper and power can be sourced more easily than in congested metros.

Typical advantages of inland sites include:

• Lower land cost and more space. Larger plots make it easier to build horizontal campuses, plan future expansion and integrate on site energy and water infrastructure.
• Potentially easier power integration. Some regions offer more available grid capacity and closer proximity to renewable energy corridors or generation projects.

At the same time, inland cities bring their own risks:

• Water table and drought risk. Many inland regions already face groundwater depletion and erratic rainfall, so conventional evaporative cooling may increase local tensions if not managed carefully.
• Network and latency considerations. Even with good domestic fiber, inland sites may see slightly higher latency to certain user clusters and submarine cable gateways compared to coastal locations.

Thought pieces from independent analysts stress that data centers should ideally be located in lower stress water basins and should prioritise non potable or treated water sources for cooling when built inland.

4 Engineering strategies to balance water, power and land

Water: from high use to low use and reuse

Engineering teams increasingly treat water as a design constraint rather than an afterthought. For coastal and inland sites alike, strategies now include using treated wastewater, closed loop or hybrid cooling and careful monitoring of water usage effectiveness metrics.

Practical water strategies include:

• Cooling technology selection. Considering air cooled chillers, adiabatic systems, liquid cooling for AI and hybrid solutions that reduce reliance on freshwater intensive cooling towers.
• Alternative water sources. Designing for treated sewage or industrial effluent as cooling make up water where municipal policies and infrastructure support this approach.

Power: grid readiness, efficiency and green electrons

The power dimension involves both securing capacity and improving efficiency. Operators are exploring co locating near renewable energy corridors and using high efficiency power chains to reduce overall consumption per unit of compute.

Key power strategies are:

• Grid studies and redundancy. Assessing substation capacity, transmission corridors and redundancy options early in the feasibility stage.
• Efficiency and load management. Using high efficiency power conversion, smart distribution and load management in line with global best practice and India’s evolving energy regulations.

Land: vertical vs horizontal campuses and resilience

Land engineering choices differ between compact coastal parcels and larger inland sites. Coastal locations tend to favour vertical, multi storey data centers, while inland sites can favour horizontal modular campuses with room for growth and on site infrastructure.

Land and layout strategies include:

• Vertical designs for constrained plots. Multi level data centers with optimised structural grids and logistics for coastal cities where land is scarce.
• Campus style layouts inland. Larger footprints that integrate substations, energy storage, cooling plants and potential renewable generation without crowding the main building.
• Climate resilience. Factoring in sea level rise, flooding, heat waves and storm risk in both coastal and inland design through structural, civil and MEP measures.

Neutral climate risk reports already warn that key Indian data center hubs face increasing flooding and heat risks, which makes resilient site and layout planning an engineering priority.

5 How J&F India supports water, power and land decisions

J&F India works with data center owners, cloud providers and colocation operators to evaluate water, power and land trade offs early and then translate those decisions into integrated structural, MEP and BIM designs. The company’s data center engineering services and complete engineering project lifecycle model make it a key partner for concept to commissioning projects.

For both coastal and inland data center projects in India, J&F India offers:

• Feasibility and site comparison. Engineering input on water, power and land trade offs for shortlisted sites, supported by engineering services in India and data center specific experience.
• Structural and MEP design for local realities. Structural design services and MEP engineering services that account for Indian codes, climate, grid conditions and ESG goals.
• BIM for optimisation and risk reduction. Digital engineering in data centers, clash detection and risk mitigation and BIM for facility management to monitor and manage water, power and space performance over time.

By treating water, power and land as linked design variables rather than separate constraints, and by combining global best practice with Indian realities, J&F India helps clients build data centers that are more resilient, efficient and acceptable to the communities that host them.