Why in News
The Ministry of Power informed Parliament that AI-driven data centres are expected to add 26.3 GW of electricity demand by 2031-32, nearly double the earlier estimate of 13.56 GW. The additional demand is proposed to be met primarily through renewable energy.
Key Highlights
- Revised estimate: Additional power load projected at 26.3 GW by 2031-32, up from 13.56 GW estimated earlier.
- Renewable-powered growth: The government plans to meet most of this demand through renewable energy.
- Rapid expansion: India’s data centre capacity is projected to increase from 2.2 GW (2025) to 12 GW by 2030 (Wood Mackenzie).
- Digital economy: India’s digital economy is valued at around ₹32 lakh crore, contributing nearly 12% of GDP.
- AI demand: Growth is being driven by Generative AI, cloud computing, big data analytics, fintech, e-commerce and digital public infrastructure.
Why Do AI Data Centres Consume So Much Power?
- AI model training requires high-performance GPUs and specialised chips.
- Large-scale 24×7 computing and data processing significantly increase electricity demand.
- Cooling systems account for a substantial share of total energy consumption.
- Continuous operation requires high reliability and uninterrupted power supply.
Significance
- Strengthens India’s position as a global digital and AI hub.
- Encourages investment in renewable energy, grid infrastructure and energy storage.
- Supports growth of Digital India, semiconductor manufacturing and cloud services.
- Creates employment in IT, engineering, power and infrastructure sectors.
[2022, GS3, 15M] Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.”
[2020] With the print state of development, Artificial Intelligence can effectively do which of the following?
1. Bring down electricity consumption in industrial units
2. Create meaningful short stories and songs
3. Disease diagnosis
4. Text -to -Speech Conversion
5. Wireless transmission of electrical energy
Select the correct answer using the code given below:
[A] 1, 2, 3 and 5 only
[B] 1, 3 and 4 only
[C] 2, 4 and 5 only
[D] 1, 2, 3, 4 and 5