India’s Data Centre Growth Reshaping Power, Cyber And Operational Risk: Howden Research
Mumbai, September 19, 2026: India’s rapid data centre expansion is creating concentrated risks across power, construction, water, cyber, and operations, according to a report titled “Howden’s Insuring the Data Centre Supercycle Report” released by global insurance broker Howden. The findings advocate for an integrated approach from site selection and design through construction and operation to build resilience and secure insurance.
Howden’s analysis identifies power infrastructure as the primary risk factor, emphasizing that the challenge involves reliable grid connectivity, substation capacity, and redundancy at each location alongside generation capacity. Between 2016 and 2025, power consumed by data centres in India grew 68-fold at a 60% compound annual growth rate (CAGR), with demand forecast to reach 57 TWh by 2030, according to S&P data. Energy accounts for approximately 65% of operating costs, with Maharashtra, Telangana, and Karnataka accounting for around 70% of capacity. Hyperscale campuses are increasingly turning to on-site, behind-the-meter generation, altering their underwriting risk profiles.
India added 7 million square feet of data centre space in 2025, growing at a 37% CAGR since 2016. The average facility size increased from 59,000 square feet in 2016 to 276,000 square feet in 2025. Between 2026 and 2030, planned expansion at existing data centres is equivalent to 78% of their current footprint. Construction alongside live, sensitive operations elevates the risk of physical damage and business interruption, particularly during testing and commissioning.
Although over 90% of Indian data centres feature redundancy in UPS, generator, and cooling systems, non-damage system outages still occur that may not trigger traditional insurance. Retail and wholesale providers, which constitute 86% of India’s data centres, also face systemic cyber exposure, where a single breach can impact thousands of tenant organizations.
Furthermore, cooling a 1 MW facility requires about 25.5 million litres of water annually, placing strain on urban locations. The report notes that water use, power usage effectiveness (PUE), energy efficiency, and carbon footprint must be integrated into early site planning.
“India’s data centre story is not only about adding capacity. Power reliability, construction at operating sites, cyber concentration and water stress can all affect uptime. These risks need to be identified early and managed together, with insurance designed around the exposures that remain. This will help operators protect their assets and avoid gaps in cover as the sector expands,” said Amit Agarwal, CEO, Howden India.
