The Telangana government is planning to supply grey water, treated water from sewage treatment plants, to data centres in Hyderabad.

This initiative aims to reduce the flow of polluted water into the Musi River while addressing the high water demand from data centres. These centres, which consume large amounts of power, require approximately 15 million litres of water annually for cooling purposes. As Telangana positions itself as a prime destination for data centres, with several under construction, the government estimates that around 210 crore litres of water will be needed each year to support existing and upcoming data centres.

Since these centres are powered by megawatt capacities, they generate substantial heat, which in turn increases the demand for water to keep the systems cool. By utilising treated grey water, the government aims to create a win-win situation that supports the growth of the data centre industry while addressing environmental concerns related to water usage and pollution.