Powering India's Data Center Boom Renewables Drive the Next Phase of India's Digital Transformation.
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India's data center industry is on the cusp of explosive growth, fueled by the rapid rise of artificial intelligence, cloud migration, and widespread digitalization. As the nation continues to solidify its position as a global software and IT hub, it is now set to become a major player in the data center market, with investments expected to exceed USD 100 billion by 2027.
India's data center capacity is projected to increase from 1.5 gigawatts (GW) to a staggering 17 GW by 2030—a twelvefold rise that reflects the growing demand for data processing, storage, and cloud computing services. To meet this demand, the data center sector has already attracted investments exceeding USD 27 billion over the last 36-48 months, with major players like Amazon, Netflix, and various banks and fintech firms among the key occupants of these facilities. This influx of capital, coupled with increasing demand, will undoubtedly drive further growth in the sector.
However, this rapid expansion brings with it a significant energy challenge. Currently, data centers in India consume less than 1 per cent of the nation's total electricity usage. But with their rapid growth, this figure could increase to 6 per cent by 2030, further complicating the country's decarbonization plans.
India has committed to tripling its renewable energy capacity to 500 GW by 2030 and achieving net-zero emissions by 2070. The question, then, becomes: How can India manage its digital expansion while meeting these ambitious sustainability targets?
The answer may lie in solar energy—a sustainable and cost-effective solution for powering India's digital future.
India's Solar Advantage
The Indian government is placing strong emphasis on solar energy, positioning the country as a future global hub for solar module manufacturing. As Bhupinder Singh Bhalla, the Renewable Energy Secretary of India, recently stated, "We aim for India to become a leading manufacturer of renewable energy equipment."
India's flagship solar initiative, PM-Surya Ghar, has already exceeded 850,000 rooftop installations and is well on its way to its goal of powering 10 million households with solar energy. By 2030, solar is expected to contribute at least half of the country's renewable energy, with community solar projects expected to play a substantial role in providing energy to isolated regions.
Supporting India's Digital Economy
The Indian government has committed ₹10,732 crore (approximately USD 1.24 billion USD) towards AI infrastructure development, which includes the creation of "AI-ready" data centers that will serve sectors such as healthcare, finance, e-commerce, and logistics.
The data center market in India is set to grow at a rapid pace, with an impressive CAGR of 24.68 per cent from 2023 to 2029. The demand for computing power is escalating, especially with the rise of AI and edge computing, which are poised to add USD 400 billion to India's economy by 2030.
Global giants like Amazon Web Services, Microsoft Azure, and Google Cloud are expanding their data center presence across India while homegrown companies like Reliance Industries, Sify, and CtrlS are making significant investments as well.
Yet, without a sustainable energy solution, these efforts could put strain on the existing power grid.
SolarBank Corporation: A Global Leader in Renewable Energy Solutions
SolarBank Corporation (NASDAQ: SUUN), a leading North American renewable energy developer, stands out for its innovative approach to addressing the global energy challenges faced by industries like data centers.
With more than a decade of experience in providing integrated solar energy solutions, SolarBank has earned a reputation for delivering "turnkey" renewable energy projects from design to maintenance.
While currently focused on the U.S. and Canada, SolarBank's vertical integration model, which covers everything from permitting and engineering to financing and operation, is gaining attention worldwide. This model positions the company as a key player in the growing demand for sustainable energy, and recently they've announced the intention to move towards energy-intensive sectors such as data centers.
Proven Operational Track Record
SolarBank has built a solid track record over the past 10 years, delivering solar solutions for a wide range of clients, including commercial, industrial, and institutional organizations. The company manages over 100 solar plants, powering over 10,000 homes with clean energy. SolarBank has also sold over 100 projects and financed more than USD 300 million in renewable energy initiatives.
SolarBank's client roster includes strategic partnerships with some of the largest companies in the United States and Canada, further expanding its footprint across North America.
Notably, SolarBank completed a USD 41-million USD deal with Honeywell, a Fortune 500 technology company, to build a 21-megawatt solar project in upstate New York. Once operational, this project will provide clean energy to 2,400 homes - and SolarBank will continue to operate and maintain it, ensuring a stream of recurring revenue.
Additionally, SolarBank secured USD 25.8 million in debt financing from the Royal Bank of Canada to construct two battery energy storage projects in Ontario.
In total, SolarBank's asset base is currently 32 MWh operational, but it is poised for growth with a pipeline of over 1,256 MWh in development. That's forty times its existing operating assets.
Strong Financial Growth and Market Expansion
SolarBank's financial performance is a testament to its successful model. Over the past decade, the company's revenue has grown from USD 1 million in 2014 to USD 58 million in the 2024 fiscal year—an impressive 58x increase, reflecting a compound annual growth rate (CAGR) of 50 per cent.
In the same period, SolarBank has seen gross margins improve, with a 29.2 per cent gross margin recorded in the first half of the 2025 fiscal year.
SolarBank is poised for continued growth, particularly as the demand for renewable energy solutions in energy-intensive sectors like data centers rises globally.
With India's data center market set to soar, and the demand for renewable energy solutions rising across the globe, SolarBank represents a compelling example of how the renewable energy sector is positioning itself at the intersection of clean energy and technological growth.
While SolarBank has not indicated plans for a direct entry into the Indian market, its success in North America highlights the global potential of integrated renewable energy solutions for the data center sector. As the need for sustainable energy solutions grows, SolarBank's proven track record offers a valuable glimpse into the future of energy and data center operations on a global scale.
There are several risks associated with the development of any data center. SolarBank is expanding into the data center industry but it does not currently have any data center projects under development or that it has secured rights to. It is in discussions with various other parties regarding potential data center opportunities and will provide details in a future news release if an agreement to acquire or develop a data center is concluded. The development of any data center or solar project is subject to identification of a suitable project site, receipt of required permits, the availability of third-party financing arrangements for the Company and the risks associated with the construction of a data center or project.
This report contains forward-looking statements. Please refer to "Forward-Looking Statements" in SolarBank's press release dated November 7, 2024 titled "SolarBank Expands into the projected USD 395 Billion Data Center Market as Developer and Strategic Partner" for additional discussion of the assumptions and risk factors associated with the projects and statements made in this report.
