Grey is the New Green: Telangana’s Data Center Revolution

The Telangana government is planning to supply treated grey water from sewage treatment plants to data centres in Hyderabad as part of a sustainable water management initiative. The move is aimed at reducing the discharge of polluted water into the Musi River while meeting the rising water requirements of the city’s rapidly growing data centre ecosystem.

Data centres, which operate on high megawatt capacities, generate significant heat and therefore require large volumes of water for cooling. On average, each facility consumes around 15 million litres of water annually. With Telangana positioning itself as a preferred hub for data centres—and several new facilities currently under construction—the government estimates that nearly 210 crore litres of water per year will be needed to support both existing and upcoming centres.

By diverting treated wastewater for industrial cooling, the initiative seeks to ease pressure on freshwater resources, promote responsible water use, and support the sustainable expansion of the data centre industry, creating a balanced approach to economic growth and environmental protection.

News by Rahul Yelligetti.