According to DCD, Indian utility NTPC has signed a Memorandum of Understanding with CtrlS Datacenters to provide 2GW of renewable energy through its subsidiary NTPC Green Energy (NGEL). The agreement supports NTPC’s broader goal to produce 60GW of green energy by 2032, with NGEL currently contributing around 6GW of the company’s total 84GW capacity. CtrlS operates data centers in Mumbai, Bangalore, Noida, and Hyderabad and plans to invest $2 billion over six years expanding across Asia and the Middle East. India’s data center market shows massive growth potential, with current live capacity at just 1.2GW of a total 8.9GW supply pipeline, and S&P Global estimating data center power demand will grow almost five times by 2030. This landmark agreement signals a strategic shift toward sustainable infrastructure development.
Powering India’s Digital Future
This 2GW agreement represents one of the largest corporate renewable energy deals in India’s history and establishes a new benchmark for data center sustainability in emerging markets. The scale is particularly significant given that India’s total data center live capacity currently stands at just 1.2GW according to DC Byte’s April 2025 report. What makes this partnership strategically important is that it addresses the fundamental challenge facing India’s data center expansion: reliable, sustainable power infrastructure. With government data showing that coal still accounts for around half of India’s 475GW power capacity, this deal demonstrates how major industrial consumers can drive renewable adoption while meeting their growth objectives.
Redefining Data Center Economics
The competitive implications of this agreement extend far beyond CtrlS’s immediate operations. Data centers are increasingly competing on sustainability credentials, with hyperscalers like Microsoft and Google making massive renewable commitments for their Indian operations. By securing long-term renewable power at scale, CtrlS gains significant advantage in attracting environmentally-conscious enterprise clients and meeting the stringent ESG requirements of multinational corporations. The deal also provides predictable energy costs in a market where power prices can be volatile, giving CtrlS more stable operational economics as it executes its $2 billion expansion plan across Asia and the Middle East.
The Grid Integration Challenge
While the 2GW commitment is impressive, the real test will be in execution and grid integration. NTPC’s current installed capacity shows the utility has substantial experience managing large-scale power projects, but integrating intermittent renewable sources to meet the 24/7 reliability requirements of data centers presents technical challenges. The partnership will need to develop sophisticated energy management solutions, potentially combining solar, wind, and energy storage to ensure consistent power availability. Success here could create a blueprint for other industrial consumers looking to transition to renewable energy while maintaining operational reliability.
Catalyst for Broader Industry Shift
This agreement likely marks the beginning of a broader trend in India’s digital infrastructure sector. As NTPC Green Energy’s documentation indicates, the utility has ambitious renewable expansion plans, and other data center operators will need to secure similar arrangements to remain competitive. The deal also positions NTPC as a key enabler of India’s digital transformation, providing the clean power backbone needed to support the country’s growing digital economy. With data centers projected to consume 2.6% of India’s total electricity by 2030, according to S&P Global estimates, such partnerships will be crucial for balancing economic growth with environmental sustainability.
Investment and Expansion Implications
The timing of this agreement is particularly significant given CtrlS’s international expansion ambitions and the 150MW campus planned in Thailand. International investors and enterprise clients are increasingly demanding transparent, sustainable power sourcing, making such renewable energy partnerships essential for global competitiveness. For NTPC, this represents a strategic diversification beyond traditional power customers and positions the company at the forefront of India’s energy transition. The success of this model could inspire similar partnerships across Southeast Asia and the Middle East, where CtrlS is expanding and where renewable energy adoption is accelerating.
