As AI continues its march, the demand for energy-intensive AI processing is skyrocketing. India, with its abundant RE resources and burgeoning AI ecosystem, is well-positioned to become a global leader in green energy-powered AI processing.
AI computing needs large-scale data centres, or hyperscale data centres. These require reliable green power at a scale and speed. Global data centre energy requirements are projected to reach 4,000 TWh by 2030, accounting for 5% of global electricity demand. Estimates suggest that training a single AI model can consume up to 284,000 kWh.
Renewable power plants have the shortest commissioning timelines due to their modular nature. India has set ambitious RE targets, aiming to generate 50% of its electricity from non-fossil fuels by 2030. With over 300 days of sunshine per year and generous wind speeds, India has immense solar energy potential, which can be harnessed to power AI processing.
India's true strength lies in local green energy champions, who have the capacity to implement world-class projects. The renewables industry is backed by a modern single national grid and a dynamic regulatory framework. India's AI ecosystem is growing rapidly, with over 1,000 AI startups. Moreover, 20% of global AI talent resides in India, making it an attractive location for AI companies. The AI market size in India is expected to reach $7.8 bn by 2025, driven by increasing demand for digital services, ecommerce and cloud computing.
India's data centre market is growing rapidly, driven by increasing demand for digital services, ecommerce and cloud computing. According to a report by MarketsandMarkets, the Indian data centre market is expected to reach 1,432 MW of installed capacity by 2025, growing at a CAGR of 21.1%. By 2030, the market is projected to reach 3,243 MW of installed capacity, with a growth rate of 15.6%.
The needs of a data centre are distinct from other infrastructure projects. They are designed and built for the highest standards of reliability, modularity, redundancy and security. The ability of the data centre to provide backup power with redundancy is also critical for its success.
Even though diesel generators are the dominant backup technology for data centres, green technologies such as batteries (6-hour backup) and hydrogen fuel cells (48-hour backup) are increasingly being explored to reduce carbon intensity. With water being a significant barrier to the expansion of hyperscale data centres, intelligent integration with technologies such as fuel cells that produce water as a by-product could be an interesting proposition.
Google's AI-powered data centre in Hyderabad is powered by 100% RE, setting a precedent for sustainable AI processing. Microsoft's AI-powered data centre in Pune uses solar power for primary energy needs, further demonstrating the potential for green energy-powered AI processing. The Make in India initiative encourages the development of green data centres and AI infrastructure, providing a supportive policy framework for the growth of this sector.
To ensure success in the AI data centre sector, India should promote a net- zero hyperscale data centre policy, aiming to position itself as the world's most sustainable data centre destination. The country should aim to unlock a significant number of carefully selected sites that can provide 24x7 green power with appropriate green backup power options.
Additionally, India should nurture skilled talent capable of building cutting-edge data centres with high levels of autonomy and security. Innovations for efficient configuration of data centres that minimise energy and water requirements should be promoted through publicly funded pilots. Finally, India should build global trust in the integrity of data protection on Indian soil with appropriate policy, regulatory and outreach initiatives.
India's clean energy strengths and growing AI ecosystem make it an ideal location to become a world leader in green energy-powered AI processing. By leveraging its RE strengths and addressing the challenges of AI data centres proactively, India can reduce its carbon footprint, enhance its reputation as a hub for sustainable business and innovation, and drive economic growth and job creation in the clean energy and AI sectors.
AI computing needs large-scale data centres, or hyperscale data centres. These require reliable green power at a scale and speed. Global data centre energy requirements are projected to reach 4,000 TWh by 2030, accounting for 5% of global electricity demand. Estimates suggest that training a single AI model can consume up to 284,000 kWh.
Renewable power plants have the shortest commissioning timelines due to their modular nature. India has set ambitious RE targets, aiming to generate 50% of its electricity from non-fossil fuels by 2030. With over 300 days of sunshine per year and generous wind speeds, India has immense solar energy potential, which can be harnessed to power AI processing.
India's true strength lies in local green energy champions, who have the capacity to implement world-class projects. The renewables industry is backed by a modern single national grid and a dynamic regulatory framework. India's AI ecosystem is growing rapidly, with over 1,000 AI startups. Moreover, 20% of global AI talent resides in India, making it an attractive location for AI companies. The AI market size in India is expected to reach $7.8 bn by 2025, driven by increasing demand for digital services, ecommerce and cloud computing.
India's data centre market is growing rapidly, driven by increasing demand for digital services, ecommerce and cloud computing. According to a report by MarketsandMarkets, the Indian data centre market is expected to reach 1,432 MW of installed capacity by 2025, growing at a CAGR of 21.1%. By 2030, the market is projected to reach 3,243 MW of installed capacity, with a growth rate of 15.6%.
The needs of a data centre are distinct from other infrastructure projects. They are designed and built for the highest standards of reliability, modularity, redundancy and security. The ability of the data centre to provide backup power with redundancy is also critical for its success.
Even though diesel generators are the dominant backup technology for data centres, green technologies such as batteries (6-hour backup) and hydrogen fuel cells (48-hour backup) are increasingly being explored to reduce carbon intensity. With water being a significant barrier to the expansion of hyperscale data centres, intelligent integration with technologies such as fuel cells that produce water as a by-product could be an interesting proposition.
Google's AI-powered data centre in Hyderabad is powered by 100% RE, setting a precedent for sustainable AI processing. Microsoft's AI-powered data centre in Pune uses solar power for primary energy needs, further demonstrating the potential for green energy-powered AI processing. The Make in India initiative encourages the development of green data centres and AI infrastructure, providing a supportive policy framework for the growth of this sector.
To ensure success in the AI data centre sector, India should promote a net- zero hyperscale data centre policy, aiming to position itself as the world's most sustainable data centre destination. The country should aim to unlock a significant number of carefully selected sites that can provide 24x7 green power with appropriate green backup power options.
Additionally, India should nurture skilled talent capable of building cutting-edge data centres with high levels of autonomy and security. Innovations for efficient configuration of data centres that minimise energy and water requirements should be promoted through publicly funded pilots. Finally, India should build global trust in the integrity of data protection on Indian soil with appropriate policy, regulatory and outreach initiatives.
India's clean energy strengths and growing AI ecosystem make it an ideal location to become a world leader in green energy-powered AI processing. By leveraging its RE strengths and addressing the challenges of AI data centres proactively, India can reduce its carbon footprint, enhance its reputation as a hub for sustainable business and innovation, and drive economic growth and job creation in the clean energy and AI sectors.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Amitabh Kant
The writer is former CEO, NITI Aayog & G20 sherpa, GoI