India's AI data centre sector is projected to require an additional 40-50 Terawatt-hours (TWH) of electricity by 2030, raising questions about how to balance rapid growth with environmental sustainability. The increasing demand for data centres, driven by artificial intelligence, could also necessitate the construction of 45-50 million square feet of real estate. Deloitte India's report highlights the need for substantial investment and strategic policy reforms to position India as a global leader in AI-driven infrastructure. However, the environmental impact of these growing demands is concerning, as India strives to meet its net-zero emissions target by 2070.

The country is set to see its AI market grow to $20–22 billion by 2027, but despite hosting 20% of the world’s data, India currently accounts for just 3% of the global data centre capacity. The gap between India’s growing AI aspirations and its current data centre infrastructure underscores the need for more efficient and sustainable practices. To bridge this gap, the Indian government launched the IndiaAI Mission in 2024, with an investment plan of Rs 10,300 crore over five years. The mission aims to develop a high-end computing facility to drive AI innovations, especially those tailored to local languages and contexts.

The demand for energy to power these data centres raises concerns about the country’s ability to meet its energy needs while adhering to environmental goals. With climate change concerns on the rise, the focus on AI-driven industries and their energy consumption makes it imperative to develop sustainable solutions. India’s success in becoming a global AI hub will depend on its ability to innovate in both technology and sustainability, with faster policy implementation and private sector engagement playing a crucial role.

Source:Outlook Business - Greenwashing: Food Industry Sustainability Risk