Data Centre Water Use: Desalination Plan for Dholera
Power gets most of the attention when people talk about data centres, but water matters too. Large facilities use water to cool equipment, and Gujarat's new policy addresses this directly. If you follow Dholera Smart City and the proposals reported in our post on Dholera data centre investments, this guide explains the water side: what the policy says, what is still unknown and what to watch.
Quick answer: how will data centres in Dholera get water?
The Viksit Gujarat Data Centre Policy 2026-29 was launched on 9 July 2026 and formally notified on 7 August 2026. The state's Science and Technology Minister said developers will be required to meet water needs through captive desalination plants, so that local freshwater is not strained. The policy offers a capital subsidy to those who build one.
What the policy says on water
According to law-firm and news summaries of the policy document:
- Captive desalination support: A capital subsidy of 20% of eligible capital expenditure (excluding land) or Rs 2 crore per MLD, whichever is lower.
- Scale reference: Reports say a 1 GW project can receive assistance for up to 20 MLD.
- Round-the-clock supply: The policy says water supply will be provided up to the doorstep of the data centre.
- Green power link: Projects availing incentives must source at least 51% of their electricity from renewable sources. This matters because desalination uses significant energy.
These figures come from published summaries, so confirm them against the notified policy before using them in a plan.
Why water is a real issue
Data centres turn electricity into heat, and cooling that heat can use water, depending on the design. Air-cooled and liquid-cooled systems use water differently, so consumption varies by project. The policy's approach is to separate this demand from farmland and community supply by requiring seawater-based sourcing. Analysts have noted that desalination itself needs energy and that brine disposal must be managed, so the arrangement works best when paired with renewable power.
What Dholera already has
The Government of Gujarat's Dholera FAQ describes water infrastructure for the Activation Area: a 50 MLD water treatment plant commissioned about 5 km away (scalable to 150 MLD), a 20 MLD common effluent treatment plant, a 10 MLD sewage treatment plant, reservoirs, and recycled water from the effluent and sewage plants for operational use. This serves the Activation Area's planned industrial and urban needs. The sources do not say it is sized for hyperscale clusters, which is why the policy points data centres to captive desalination.
What is still unknown
- Where plants will sit and how seawater will be drawn. Siting and intake details have not been published in the sources reviewed.
- Cost per project. Desalination capex and running costs vary widely.
- How many proposals will convert. Officials have said the proposals received so far are expressions of interest, not final investments.
- How water will be shared with the wider region. Planning documents will need to show this.
How to follow this story responsibly
- Separate proposals from construction. Our guide to reading Dholera Smart City news explains the difference.
- Track utility milestones. Look for notices on land allotment, desalination permissions and power agreements.
- Watch the 51% green power condition. It links directly to water and cost.
What this means for land buyers
A data centre cluster needs large land parcels, utilities and logistics, but it does not automatically raise demand for every plot. Benefits depend on location, zoning and timing. Compare each location carefully, and view current Dholera plots with questions about access, zoning and utilities in mind.
Frequently asked questions
Do data centres in Dholera have to use desalinated water? The state minister said developers will need to meet water needs through captive desalination. Check the notified policy for exact conditions.
How much subsidy is offered for desalination? Reported as 20% of eligible capex (excluding land) or Rs 2 crore per MLD, whichever is lower.
Is Dholera's existing water plant meant for data centres? The 50 MLD plant serves the Activation Area. Sources do not say it is sized for hyperscale clusters.
Why is the 51% renewable rule linked to water? Because desalination consumes energy, and the policy ties incentives to green power.
Talk to Omana Projects
Call +91 92171 04219 or email customercare@omanaprojects.com to discuss Dholera Smart City opportunities and property in Dholera.
