Solar Open-Access Demand in Uttar Pradesh Set to Surge, Driven by Data-Centre Boom

Solar Open-Access Demand in Uttar Pradesh Set to Surge, Driven by Data-Centre Boom

December 8, 2025

Demand for solar open-access power is growing rapidly in Uttar Pradesh, impelled largely by the growth of data centers across the state. Already, as per the latest tracker by a leading clean-energy research firm, data centers account for 8.9% of total open-access demand in Uttar Pradesh-just behind heavy-industry sectors such as steel, metals and mining, which accounted for 16.9%. At the national level, data center demand represents 13.6% of open-access power consumption, ranking second only to the steel industry.

More data centers and other power-intensive industries like electronics manufacturing and defense-related units would come on stream in the next three years, and hence, Uttar Pradesh’s solar open-access demand could double during this period, the company expects. In the meantime, MNRE has called upon all financial institutions and NBFCs to exercise caution while extending finance to new standalone solar-module manufacturing units. MNRE, in an advisory, explained that finance should be provided to fully integrated solar manufacturing facilities, rather than only to standalone module assembly lines, against the backdrop of an increasing mismatch between domestic supply and demand of modules. At the policy level, the Uttar Pradesh Electricity Regulatory Commission has approved the power-purchase agreements and tariff rates for 129.2 MW of solar projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan-PM-KUSUM C-2 segment, with discovered tariffs in the range of ₹2.48/kWh to ₹2.99/kWh.

Analysts say solar combined with BESS is fast becoming the most viable route for Uttar Pradesh, which is much less endowed with wind generation potential, to work towards meeting growing industrial demand. With expanding data-center and manufacturing capacity, solar open access is fast emerging as the preferred power procurement model for sustainability-conscious and energy-intensive enterprises.