“AI can help solve climate challenges, but only if we solve AI’s own energy challenge first - Sundar Pichai CEO, Google
Rising energy demands of the AI era
AI depends on data, and tonnes of it. The entire 'AI revolution' stands on the shoulder of massive data centres that can process data at lightening fast speeds. But that needs power. And India’s rapid expansion of data centres is driving a massive surge in electricity consumption. The shift to AI and digital storage means data facilities, powered by GPUs and high-performance chips, now consume five to ten times more energy than traditional servers.
The race to build AI-ready infrastructure
Cities such as Mumbai, Chennai, Bangalore, and Hyderabad are becoming global data-centre hubs. Backed by government missions and private investment, India’s data-centre capacity is expected to grow from 870 MW in 2024 to over 1,300 MW by 2026, supported by a wave of clean-energy partnerships. However, this poses several other challenges in energy management policies.
Searching for cleaner power sources
The government is prioritising low-carbon solutions like renewables and nuclear energy to meet AI’s rising power needs. India’s plans to expand nuclear capacity and promote Small Modular Reactors (SMRs) reflect a strategic push toward sustainable and stable power for data-driven growth.
The promise and risk of small modular reactors
SMRs, designed to be safer and more efficient, could provide steady, carbon-neutral energy. However, regulatory clearances, public safety concerns, and financing challenges remain key hurdles before large-scale deployment.
Towards an energy-smart AI future
Balancing AI’s innovation with energy efficiency will define the next phase of digital infrastructure. Clean power and advanced regulation will decide how India sustains its AI momentum responsibly.
Summary
India’s AI data-centre boom is reshaping its power landscape. With electricity demand soaring, policymakers are betting on renewables and small modular reactors to ensure low-carbon, reliable energy for the future of digital India.
Food for thought
Can India make AI growth sustainable without compromising its energy security?
AI concept to learn: Small Modular Reactors (SMRs)
SMRs are compact nuclear power plants designed for flexibility and safety. They generate stable, low-carbon electricity and can be deployed closer to consumption centres, offering a potential clean-energy solution for AI-driven data infrastructure.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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