In an era where energy has become the lifeblood of modern civilization, its significance transcends mere convenience-it is the invisible force powering progress, innovation, and survival. As populations swell and urbanization accelerates, the demand for clean, reliable energy has soared to unprecedented heights, challenging nations to rethink how they generate, distribute, and consume this precious resource.
Yet just as societies grapple with balancing growth and sustainability, a new frontier emerges: the voracious energy appetite of Artificial Intelligence. AI’s transformative potential-from healthcare breakthroughs to smart cities-hinges on sprawling data centres that hum day and night, consuming power at scales that rival industrial giants.
These digital engines of the future don’t just need energy; they demand it ceaselessly, cleanly, and efficiently. But here lies the paradox: as we lean on AI to solve humanity’s greatest challenges, its very infrastructure threatens to strain our energy systems and environmental goals.
Are we prepared to power this dual revolution-of a growing population and an AI-driven world-without compromising the planet’s future? To unravel this complex equation, we turn to Sanjay Reddy of GVK Group, a visionary steering infrastructure and energy solutions, let’s explore.
According to Deloitte India’s report, Attracting AI Data Centre Infrastructure Investment in India, the country will need an additional 40–50 terawatt-hours (TWh) of electricity by 2030 to meet the rapidly growing demand for artificial intelligence-driven data centres. The report highlights that this surge in power requirement underscores the urgent need for significant investments and targeted policy interventions to position India as a global hub for AI-enabled data centres.
As AI adoption accelerates, the expansion of data centres will place increased pressure on India’s power infrastructure, making it essential to modernize the grid, boost generation capacity, and integrate more renewable energy sources to ensure sustainable growth and energy security.
“India’s energy needs have always been a moving target-just as we think we’ve caught up, new demands emerge on the horizon. To truly keep pace, we must be willing to overshoot our projections, building in extra capacity not just for a growing population and industry, but now for the digital engines of AI that will require even more power. As artificial intelligence reshapes our future, the challenge isn’t just to meet demand, but to anticipate it-are we truly prepared for the next leap?” says Sanjay Reddy.
India has made remarkable strides in expanding its renewable energy capacity, with record annual additions in solar and wind power, and a strong policy push towards achieving 500 GW of non-fossil fuel-based energy by 2030. Major investments from both the government and private sector are driving the growth of advanced, energy-efficient data centres, many of which are increasingly powered by renewables.
The presence of world-class facilities like Yotta NM1 and the expansion of players such as NTT DATA signal that India is not only scaling up infrastructure but also adopting global best practices in energy efficiency and sustainability.
Despite this momentum, significant challenges remain. India currently hosts 20% of the world’s data but only 3% of global data centre capacity, highlighting a gap between digital ambitions and infrastructure readiness.
The rapid growth of AI data centres could push their share of national power demand from less than 1% to as much as 6% by 2030, straining grid reliability and making the integration of renewables even more urgent. Land acquisition, water use for cooling, and the need for skilled talent and robust policy frameworks are additional hurdles that require coordinated action.
Sanjay Reddy believes, “We need more than just ambitious energy targets to meet the evolving demands of India’s AI-driven future. The challenge ahead is dynamic and shifting-requiring not only more power, but a surge in innovation, proactive planning, and bold policy transformation. It’s not enough to simply expand capacity; we must anticipate the next wave of technological change, foster sustainable and green solutions, and create an enabling environment that attracts investment and talent.”
“As AI and data centre needs accelerate, our response must be agile and holistic, integrating infrastructure, regulation, and ecosystem development. Only then can India truly seize its moment as a global digital powerhouse.” He adds.
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