How OVHcloud balances AI innovation with sustainability

India’s increasing focus on sustainable cloud infrastructure is being driven by a combination of progressive government initiatives and a growing sense of corporate responsibility. The Indian government has introduced several policies and frameworks, including the National Data Centre Policy, incentives for green data centres, and the establishment of specialised zones for data centre development. 

Terry Maiolo, Vice President-General Manager APAC, OVHcloud, spoke with V&D around OVHcloud's commitment to sustainability, data sovereignty, and ethical AI, particularly in the context of India’s fast-growing digital economy. He also explained how OVHcloud’s proprietary water-cooling technology reduces energy, water use, and carbon emissions while improving efficiency, making their data centres both eco-friendly and cost-effective, and much more. Here are some excerpts from the interaction:

When we talk about emerging technologies such as AI, what do you think is the future of AI in India, and where do the real opportunities lie?

In India specifically, I think the greatest opportunities lie within sectors where sovereignty and trust are critical, industries such as fintech, healthcare, and education. These organisations are particularly focused on ensuring their data remains secure, stored locally, and not shared externally.

That said, India also has a remarkable concentration of technical expertise. It’s a real proving ground for start-ups and emerging technologies, particularly in AI model development and deployment. There’s a vibrant start-up ecosystem, India is the world’s second-largest start-up market, which makes it a unique environment for AI innovation.

Speaking about OVHcloud, what  is your stance on issues such as data privacy, ethical AI, and sustainable cloud operations?

That’s a great question, and I’ll take it one part at a time. Firstly, OVHcloud is a truly global player, with 44 data centres worldwide, including one in Mumbai, which is particularly relevant today.

We’re a European company, and sovereignty is central to how we operate. Although we have a presence in the United States, that business is ring-fenced, ensuring our global operations comply with GDPR and European data sovereignty standards. This means that no data is shared with governments, by law, they simply don’t have access.

Just as importantly, our customers’ data remains entirely their own. We don’t monetise, share, or even anonymously use customer data for any kind of revenue generation. Sovereignty and trust are absolute cornerstones of our business.

On sustainability, OVHcloud controls its entire hardware lifecycle. We manufacture many of our own data centre components, racks, cooling systems, and servers, in our factories. We manage their assembly, distribution, and reuse, giving equipment a second and even third life. Our aim is to achieve zero waste by next year.

What’s particularly unique is our approach to cooling. Our Mumbai data centre, for example, uses direct-to-chip water cooling instead of traditional air conditioning. We’ve been refining this technology for over 20 years. This method uses far less electricity and water, as the heat is removed directly at the chip level and recirculated in a closed loop.

As a result, our Power Usage Effectiveness (PUE) is 1.26, well below the industry average of 1.56. Our Water Usage Effectiveness (WUE) is just 0.37 compared to the industry’s 1.8. This means we use less energy, less water, and less space, making our operations not only sustainable but also highly cost-efficient, an important factor in a price-sensitive market like India.

You mentioned cooling. Could you explain what it means for a data centre to be fully water-cooled and its impact on reducing carbon footprint?

Of course. When we say a data centre is fully water-cooled, it means we use our own proprietary technology to cool the chips directly. A heat block containing circulating water is placed against the components that generate heat. Instead of cooling the entire air volume of a room, we remove the heat at its source, before it escapes into the air.

The system operates in a closed loop, meaning the same water is continuously reused; it doesn’t evaporate or need constant replenishment. This drastically reduces both power and water consumption compared with traditional air-conditioning systems, which can use hundreds of thousands of gallons of water annually.

So, when we say “water-cooled”, it’s not just a catchphrase, it genuinely reduces carbon emissions by lowering energy and water use.

Why do you think sustainable cloud infrastructure has become a top priority for Indian CIOs?

The push is coming from two directions. Firstly, government policy, India has introduced several initiatives such as the National Data Centre Policy and special data centre zones to promote responsible consumption.

Secondly, corporate boards are responding to both regulatory and social expectations. There’s increasing awareness of environmental responsibility, and sustainability discussions are now a regular feature in boardrooms.

Interestingly, sustainability isn’t only about responsibility, it’s also about efficiency. Using less power, less water, and less space directly translates into lower operational costs. That’s a major benefit for our customers.

With increasing demand for performance and capacity, how does OVHcloud balance sustainability goals with growing workloads?

Sustainability is part of our DNA, it’s not something we’ve had to retrofit. We’ve been operating at scale with these principles for over 20 years.

While AI and machine learning workloads do require massive computing power, our efficiency comes from controlling the entire hardware lifecycle. Every component is reused, recycled, or repurposed wherever possible. Precious materials are recovered, and any parts that can be reused are given another life. This approach helps us maintain performance without compromising on sustainability.

How do OVHcloud’s initiatives, such as your Mumbai data centre, align with India’s broader climate goals?

Quite simply, our operations align perfectly with the goals of using less energy and water. Many governments set PUE targets around 1.3; our facilities are already operating below that at 1.26.

Having this kind of infrastructure within India is vital for both climate goals and data sovereignty. If organisations want to keep their data within national borders, they need access to sovereign, sustainable cloud solutions locally, and that’s what our Mumbai data centre provides.

What differentiates OVHcloud from other global cloud providers?

Three key things: our approach to data sovereignty, sustainability, and customer freedom.

We never monetise customer data or share it with any government. Our operations are entirely compliant with European privacy laws.

Secondly, sustainability is built into our model, we use less power, less water, and less space while maintaining competitive pricing. And thirdly, our customers have true freedom. We use open-source tools, we don’t charge ingress or egress fees, and we make it easy for customers to move their data if they wish.

There’s a common perception that sustainability comes at a premium, but with OVHcloud, customers in India can choose us purely on price and performance, and still gain all the benefits of our sustainability and sovereignty commitments.

You mentioned India’s price-sensitive market earlier. Are there any particular challenges or opportunities you see here?

The biggest challenge is simply to stay competitive, but the opportunities are vast. We’re working with some exceptional Indian organisations that are not only growing within the domestic market but also expanding globally. Many of them use our Mumbai infrastructure in combination with our other 44 data centres worldwide to take their products and services global.

So, the opportunities in India are enormous, both locally and as a launchpad for global innovation.