AI-driven data centres are expanding rapidly in India and globally, sharply increasing electricity demand. Small Modular Reactors (SMRs) are emerging as a possible long-term energy solution for powering AI data hubs, raising questions on safety, policy and infrastructure.
Why India Needs Large Data Centres
- India currently has less data-centre capacity (1.4 GW) despite having twice as many internet users as Europe.
- Strong growth in digital services, e-governance, fintech, OTT, and AI tools.
- Data rules require local storage, increasing domestic infrastructure.
- India’s AI data-centre capacity may grow 2–5× by 2030.
- AI vs Traditional Servers – Power Demand: AI server racks (GPUs): 80–150 kW each → ~5–7× more power
- Global data-centre energy demand may rise from 460 TWh (2024) to 1,300 TWh by 2035.
Example Cases
- China: data-centre use growing 25% yearly; expected 400+ billion kWh by 2025
- U.S. state Virginia: expected 25% electricity demand rise in 5 years
Where Are AI Data Centres Coming Up?
- Global hubs: U.S., China, Norway, Japan, U.K., Germany, Malaysia
- India: Vizag (Google), Jamnagar (Reliance), plus Mumbai, Chennai, Bengaluru & Hyderabad
Why Push for Low-Carbon Energy
- Big tech firms face decarbonisation commitments & regulatory pressure
- AI workload growth demands stable, low-carbon, round-the-clock energy
- Mix includes solar + storage, green hydrogen, geothermal, gas & emerging nuclear
Challenges & Concerns
- Radioactive waste & new fuel types (e.g., HALEU) → disposal challenges
- Transport of factory-built reactors needs strict regulation
- Licensing frameworks globally still evolving
- Interim on-site nuclear waste storage likely needed
Way Forward
- Build regulatory readiness, safety training, & waste management systems
- Use retired coal-plant sites for SMRs
- Continue renewable + battery storage development
- Promote industry-government partnerships (AI firms + nuclear vendors)
WHAT ARE DATA CENTRES?
Data centres are special buildings that store and manage huge amounts of digital data (like your photos, videos, emails, apps, and websites).
- They contain powerful computers and servers that keep online services running 24/7 — like Google, YouTube, banks, hospitals, and government portals.
Why Data Centres are Important in the Future
- Growing Digital Life: As everything becomes online — payments, education, shopping, health — more data centres are needed to store and process information.
- AI & 5G Growth: Artificial Intelligence, cloud services, and fast 5G internet need huge computing power, which data centres provide.
- Data Security & Privacy: Countries want data stored inside the country for safety. (India’s data localisation policy = build more Indian data centres)
- Job Creation & Economy: Setting up data centres brings investment, tech jobs, and new infrastructure development.
Conclusion:
A global AI boom will dramatically increase electricity use. India must balance digital expansion with clean, reliable energy. SMRs, alongside renewables, can support future AI data-centre growth — but safety, regulation, and waste management must be strengthened first.
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