Data Centres and Green Hydrogen are expected to generate a massive increase in India's solar demand starting FY29, according to a report. ValueQuest Investment Advisors' new deep-dive report predicts that India's solar power industry could see a significant increase in the demand for round-the-clock clean energy, alongside soaring growth in green hydrogen production and the growing demand from data centres, creating an additional solar demand of 15-20 GW per year on top of the existing forecast from fiscal 29 onwards.   

The report warns that if these trends play out, the solar market may accelerate even beyond the projections of the mainstream market forecast, which don't incorporate these newer drivers. These are other drivers that are just beginning and are not reflected in the mainstream market forecast or analyst models, the report points out. Reliable, low-carbon electricity supplies 24/7 are anticipated as data centres rapidly scale up in growth, particularly for applications of AI and cloud services, and developers are drawn towards solar sources combined with battery energy storage systems (BESS). 

Based on similar lines, India's National Green Hydrogen Mission is targeting 5 million tonnes per annum to produce green hydrogen by 2030, which may become a major solar consumer. The report estimates the need for about 20 GW of dedicated solar power to produce one million tonnes of green hydrogen, including solar storage for energy optimisation of electrolyisers. Indian total solar market is already diversified. There is now an increasing thrust for utility-scale projects, but also for commercial and industrial open-access projects, and also for agricultural solarisation using schemes such as KUSUM, and rooftop installations. The country added approximately 45 GW of solar energy in the segments during FY26, indicating a higher installation rate.   

Under conservative estimates, ValueQuest forecasts that solar demand could reach approximately 85 GW annually by FY30 which is much more than the present estimates. The opportunities which these new demand sources present, if they can actually be created, will have a two-fold impact on India's decarbonization process, and on planning & infrastructure needs in diverse energy, data infrastructure and industrial systems, demanding long-term readjustments of renewable energy strategies.