India’s solar capacity is set to surge by 22% each year by 2035 as the data center boom will drive increased power consumption, a new report by Nuvama showed on Monday.
The consultancy estimates that India’s total power demand will rise by 6% every year over the next decade, “driven by economic growth, rising urbanisation, manufacturing expansion and increasing electrification across sectors,” according to the report cited by Indian news outlet ANI.
Solar growth will vastly outpace overall power demand as power-intensive data centers will drive 22% compound annual growth rate (CAGR) in solar energy capacity from 2026 to 2035, the report found.
“Our base case suggests green hydrogen and data centre capacity shall add another 251GW solar capacity, while it is 406GW capacity in the bull case scenario,” Nuvama analysts said in the report.
“Given solar capacity expansion in our base case, the share of solar shall rise from 28% in FY26 to 61% by FY35 and to 65% in the bull case,” they added.
India expects to nearly quadruple its solar power capacity and triple wind power-generating assets within ten years, according to the new Generation Adequacy Plan published by the country’s Central Electricity Authority earlier this year.
India projects to have a total of 509 gigawatts (GW) of solar power capacity installed by the end of the 2035-2036 fiscal year, up from 140 GW installed solar PV capacity as of January 2026.
“The installed generation capacity projection in 2035-36 shows that the country is moving toward a strong transition to non-fossil energy. Renewable sources, especially solar PV, hydro, and wind, will dominate future capacity, supported by Energy Storage Systems,” according to the policy.
In 2025, India boasted that it was five years ahead of schedule when it achieved its target of having 50% of its installed electricity capacity coming from non-fossil fuel sources.
However, India’s electricity grid is expanding at a slower pace than the boom in renewable energy installations, leading to an increased share of clean energy curtailments and threatening to slow the solar and wind boom in the world’s most populous country.
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