As India races to become a global artificial intelligence (AI) powerhouse, a new challenge is emerging beyond chips, software and computing power: electricity and water.
Every AI query, digital payment, online purchase, streaming video and cloud-based application depends on data centres, the massive facilities that store, process and transmit digital information. As AI adoption accelerates, these data centres are expanding rapidly across India, bringing with them unprecedented demands on power grids and water resources.
Experts warn that while India’s digital transformation is essential for economic growth, policymakers must now confront the physical infrastructure requirements behind the country’s AI ambitions.
“Think of AI data centres as giant factories,” said Saakshar Duggal, an expert in Artificial Intelligence Law and 26-time TEDx speaker. “But instead of producing cars or steel, they produce AI answers. Every time we ask AI a question, we rarely think about what happens behind the scenes. Yet every answer depends on vast data centres consuming enormous amounts of electricity and water for cooling.”