Data centers represent around 9 TWH of energy consumption in India | Photo credit: osceloote
The use of artificial intelligence (AI) is promoting the demand for data centers, which in turn is generating demand for electricity. A recent report by the International Energy Agency has indicated that AI’s adoption rates increased from a bit of approximately 15% of companies that use AI in 2020 to almost 40% in 2024.
Data centers represent around 9 SWH of energy consumption in India, or about 0.5% of total consumption, the report points out, and adds that the sector “seems to be ready for rapid growth.”
A conventional data center can have a power capacity of approximately 10-25 MW, while one hyperscale and centered on AI can have a capacity of 100 MW or more with its annual electricity equivalent to that of 100,000 homes.
India will benefit in its persecution of persecution or AI, with the value of IT exports constantly growing to more than $ 200 billion in 2024. In comparison, the world’s largest oil exporter won $ 220 billion in export revenues that year.
The demand for dates and computer science in India is promoted by about 950 million Internet users. The data location requirements in some sectors are pushing the capacity of the data center.
In June 2024, the country had 2 GW of total capacity of the data center installed in operation, using electricity equivalent to that of 6.5 million Indian homes. India’s ability has doubled in just four years. More than 2 GW capacity are in process and will see daylight for the next two years. By 2030, estimates show that Indian will have an installed capacity of about 5 GW.
The Indian Mission of the Government, with a budget of $ 1.2 billion, aims to develop an IA computer ecosystem with more than 18,000 GPU to support new companies and research. In addition, there are incentives of state governments for data centers. For example, Uttar Pradesh has announced a 100% exemption on work positions and electricity transmission for ten years for new data centers.
Data centers are promoting the growth of the demand for electricity of India at a time when India is already among the fastest growing electricity markets in the world. Coal represents 74% of the generation of electricity in India today, providing much of the reliable power to the network, and it is likely that the domain of coal in the mixture will continue beyond 2030.
However, companies can directly buy the energy of the generators. For example, Bharti Airtel, who said he would acquire 140 GWH or renewable energy annually, has been working with generation companies to buy green energy for their data centers.
To ensure that the next wave of the construction of new data centers remains in the objective, the IEA says that India will need to address the problems of reliability of the network. “Energy generation and captive energy generation for data centers remain critical considerations due to the risk of interruptions of the network power supply.”
IA efficiency gains
While AI can send the demand for energy shots, technology can also help the sector be more efficient. According to the IEA, “the detection of faults enabled for the AI can reduce the interruption time of the network by 30-50%, and the intelligent AI can unlock 175 GW of transmission capacity without new lines. In buildings and transport, Ia could allow energy energy to be energy and vehicles and reduction and reduction and reduction
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Posted on April 13, 2025