Data Centres and Green Hydrogen to Drive Next Phase of Solar Demand Growth from FY29, ValueQuest
New Delhi, May 7 (BNP): India’s solar energy sector is poised for a strong structural expansion from FY29, supported by rising electricity demand from data centres and the emerging green hydrogen industry, according to an analysis by ValueQuest.
The report estimates that these two high-growth sectors could together add around 15–20 gigawatts (GW) of incremental solar power demand over the medium term, signalling a meaningful shift in the country’s renewable energy consumption profile.
It notes that the rapid expansion of digital infrastructure, particularly large-scale data centres, will significantly increase power requirements in the coming years. With global technology companies increasingly focusing on decarbonisation, solar energy is expected to become a preferred source for meeting long-term clean energy commitments.
Alongside this, green hydrogen is expected to emerge as a key long-term driver of renewable electricity demand. Since hydrogen production is highly energy-intensive and closely linked to renewable power sources, it is likely to support sustained additions to solar capacity.
The report further highlights that the combined demand from digitalisation and clean energy transition initiatives will provide stronger long-term visibility for India’s solar industry. This is expected to encourage investments across solar generation, storage solutions, and grid infrastructure.
Analysts observe that this trend reflects a broader structural transformation in India’s energy landscape, where emerging industries and sustainability goals are increasingly shaping future power demand.
Overall, the outlook points to a durable growth opportunity for India’s solar sector, driven by new-age industrial demand and the country’s accelerating shift toward a low-carbon energy system.
