Integrating Energy and Water Security: A Case for Colocating Data Centres with Pumped Storage Projects in Maharashtra

Overview : 
This issue brief argues for strategically colocating large-scale data centres (DCs) with pumped storage hydropower projects (PSPs) in Maharashtra. The integrated model addresses the dual challenge of energy and water security by using PSPs to provide reliable, renewable power while their reservoirs serve as a thermal sink for DC cooling systems. While acknowledging implementation challenges like long timelines and high capital costs, the document recommends proactive zoning policies, financial incentives, and the use of treated water to make the model viable. This approach aims to support Maharashtra’s digital growth sustainably, minimizing pressure on urban grids and freshwater resources.