Evaluate the role of data centres in supporting the digital economy. Analyse the factors contributing to their growing environmental footprint. Suggest policy interventions to promote greener data infrastructure.

Topic: Infrastructure: Energy

Q6. Evaluate the role of data centres in supporting the digital economy. Analyse the factors contributing to their growing environmental footprint. Suggest policy interventions to promote greener data infrastructure. (15 M)

Difficulty Level: Medium

Reference: DTE

Why the question

The rapid expansion of AI, cloud computing and digital services has increased the strategic importance of data centres while simultaneously raising concerns regarding their environmental sustainability and resource consumption.

Key Demand of the question

The question requires evaluating the contribution of data centres to the digital economy, analysing the reasons behind their growing environmental footprint, and suggesting policy measures for developing sustainable and green digital infrastructure.

Structure of the Answer:

Introduction

Briefly highlight the growing role of data centres as critical infrastructure for the digital economy and AI ecosystem.

Body

  • Role in digital economy: Explain how data centres enable digital services, innovation, digital governance and economic activity.
  • Environmental footprint: Discuss factors responsible for increasing energy, water, land and material resource consumption associated with data centres.
  • Greener data infrastructure: Suggest regulatory, technological and policy measures to balance digital growth with environmental sustainability.

Conclusion

Conclude by emphasising that India’s digital ambitions must be aligned with resource efficiency and sustainability to ensure long-term and inclusive technological growth.