India’s rapid expansion into artificial intelligence infrastructure is drawing concern from environmental and energy experts as the nation’s data centre build-out intensifies demand on electricity grids and freshwater supplies. While AI adoption is being hailed as a technological leap forward, the infrastructure required to support it is proving to be energy-hungry and resource intensive.
AI systems rely on large data centres packed with powerful servers that run day-and-night to process massive datasets. These facilities consume significant amounts of electricity, placing pressure on local grids already stretched by residential and industrial demand. Analysts note that with India’s data centre capacity expected to grow sharply in the coming years, grid stress could worsen unless renewable energy deployment keeps pace. Traditional coal-based generation still provides much of the baseline power, which contributes to higher carbon emissions amid the AI build-out.
In addition to electricity concerns, AI data centres also require large quantities of water for cooling, with usage levels potentially rivaling other major industrial consumers. This has raised questions about water sustainability in regions already facing seasonal shortages. Critics argue that without careful planning and stronger regulations, AI’s rapid growth could exacerbate energy scarcity and water stress, particularly in urban and peri-urban areas