Why are data centres planned in India facing a global risk of operational disruption?

Newly planned data centers in Tamil Nadu, Telangana, and Karnataka are facing significant challenges as they rank among the top 30 regions worldwide at risk of operational disruption due to extreme heat. A comprehensive study by risk consultancy XDI assessed 41 upcoming data centers in India, revealing that 12% of these properties are classified as high-risk. The analysis indicates a staggering 269% increase in average damage risk projected from 2026 to 2100 as temperatures rise. The report highlights a total of 2,595 planned data centers globally, pinpointing areas where physical damage from climate impacts and operational interruptions due to heat could severely affect infrastructure performance and insurance viability. Titled “2026 Global Analysis of Planned Data Centres for Physical Climate Risk and Resilience,” the study emphasizes that planned data centers in countries including Brazil, India, Mexico, Indonesia, and Spain exhibit alarming levels of operational disruption risk from extreme heat. In fact, over 75% of the analyzed assets in these nations are categorized as high risk, with the potential for this risk to escalate dramatically over time. Specifically, Tamil Nadu has been identified as the sixth most vulnerable region, while Telangana and Karnataka follow closely in seventh and eighth place, respectively. This alarming ranking underscores the urgent need for strategies to mitigate climate-related risks in the data center industry, especially considering the substantial foreign investment of $7 billion backing these initiatives.