The rapid rise of artificial intelligence (AI) is transforming energy use globally and in India. Data centres, essential for AI operations, are driving a surge in electricity demand. This growth poses challenges and opportunities for energy management and sustainability.
Rising Energy Demand from AI Data Centres
AI’s hunger for computing power is causing data centre energy use to soar. Globally, data centre electricity consumption is set to more than double by 2030, reaching nearly 945 terawatt-hours (TWh). AI-optimised centres will account for the largest increase. India’s demand is projected to jump from 1.2 gigawatts (GW) in 2024 to 4.5 GW by 2030. Major hubs include Mumbai, Chennai, and the National Capital Region. This growth will add 40-50 TWh of annual electricity consumption in India alone.
Energy Consumption in Context
Data centres currently use 1-2% of global power, expected to rise to 3-4% by 2030. Compared to other sectors, steel consumes about 7% of power. India ranks third worldwide in energy use, mainly from coal, oil, and natural gas. The expanding data centre load adds pressure to already strained energy systems. Cooling servers also raises freshwater demand, compounding resource challenges.
AI’s Dual Role in Energy Efficiency
AI is both a driver of energy demand and a tool for smarter energy management. It aids development of clean energy technologies and new materials to reduce reliance on imports. AI accelerates project delivery and boosts energy and resource efficiency. However, these gains will not fully offset rising consumption. AI also helps defend energy infrastructure from cyberattacks, which have increased with AI sophistication.
Renewables and Sustainable Real Estate
To meet rising power needs, renewable energy and natural gas are leading choices due to cost and availability. India’s real estate sector is adopting AI-powered solutions like smart lighting and predictive HVAC to cut energy use by up to 25%. Green building certifications such as GRIHA and LEED promote AI-based monitoring. Nearly 25% of India’s data centre capacity is green-certified, reflecting a push for sustainable infrastructure.
Smart Grids and AI Integration
India’s National Smart Grid Mission uses AI to manage demand and integrate renewables, improving grid reliability. AI-driven cooling and analytics reduce energy use in data centres. Companies like Airtel Nxtra, BrightNight, Tata Power ReNew, and Hindustan Zinc use AI for load forecasting and power optimisation. AI helps detect faults and power theft, enhancing supply stability. A unified digital energy grid powered by AI has potential but needs policy support.
Challenges and Policy Needs
Despite efficiency gains, meeting AI-driven energy demand with renewables alone is difficult. The energy grid requires a transition to sustainable sources supported by government nudges. Sustainable AI development focuses on higher power efficiency and reduced water use. Balancing AI growth with energy security and environmental goals remains a key challenge.
Questions for UPSC:
- Point out the challenges and opportunities posed by increasing energy demand in India due to digital technologies including AI.
- Critically analyse the role of AI in enhancing energy efficiency and managing renewable energy integration in power grids.
- Estimate the impact of data centre energy consumption on India’s overall energy security and resource management.
- With suitable examples, underline the significance of sustainable infrastructure development and green certifications in India’s real estate sector.
