The recent AI Impact Summit in New Delhi saw an impressive turnout, with major tech leaders such as OpenAI’s Sam Altman and Google’s Sundar Pichai in attendance. This year’s summit is notable as it marks the first time the event has been hosted in a developing country. India is leveraging this opportunity to position itself as a burgeoning hub for artificial intelligence investment and innovation, drawing in discussions on how to expand business opportunities within the sector.
While around 300 Indian entrepreneurs showcased their AI innovations aimed at addressing everyday challenges, the summit notably lacked dialogue regarding the environmental ramifications of AI expansion. Specifically, concerns regarding the impact of large-scale data centres, which are critical for AI operations, were barely addressed. These facilities require substantial water and energy for cooling, raising questions about their sustainability in a country where resources are already stretched thin.
Data centres are essential infrastructures that house computer servers and related technology, and their operations are highly resource-intensive. As India seeks to attract billions in investments from major tech companies like Microsoft, Amazon, and Google, the existing data centre hubs are expanding in regions where water and energy supplies are already under pressure. For instance, Hyderabad is facing an acute water shortage of approximately 909 million litres daily for both domestic and industrial employ in the next two years, yet Amazon continues to expand its data centre operations in the area.
Similarly, Microsoft is developing its AI facility in Pune, southeast of Mumbai, a region that experienced significant water shortages last year, prompting protests from local residents. Activists have voiced concerns that the rapid proliferation of data centres could exacerbate these existing issues, particularly in water-scarce regions.
As companies explore energy-efficient technologies for cooling their AI systems, many activists argue that there is insufficient public data available to fully understand the potential impacts of these new data centres on India’s water resources. Shalu Agrawal, director of programs at the Council on Energy, Environment and Water (CEEW), stated, “We do not have full information on what technologies [the companies are proposing]. We demand frameworks for disclosure.”
India’s Aspirations in AI
Despite its impressive pool of tech talent, India has historically lagged in artificial intelligence development compared to other nations. However, it is aggressively pursuing a more prominent role in the global AI landscape. The country generates nearly 20% of the world’s data, but only 3% of its storage capacity. Indian Electronics and Information Technology Minister Ashwini Vaishnaw projected that India could see over $200 billion in investments across various sectors of the AI stack within the next two years.
Prime Minister Narendra Modi emphasized India’s commitment to advancing AI during his address at the summit, asserting, “India is not scared. India sees fortune and a future in AI.” Leading up to the event, major players like Google, Amazon, and Microsoft pledged a combined $68 billion for AI-driven projects in India, focusing on cloud computing and the establishment of new data centres. Google plans to invest $15 billion in a substantial AI hub and data campus in Visakhapatnam, in collaboration with India’s Adani Group and Bharti Airtel, marking its largest AI hub outside of the United States.
Regulatory Gaps and Local Concerns
As the boom in data centre development unfolds, local communities are increasingly concerned about the implications for water and energy resources. Currently, India lacks a comprehensive national policy framework to guide data centre development or ensure transparency regarding their resource consumption. Analysts indicate that the energy and water usage of India’s data centres could more than double by 2030, according to CEEW.
Agrawal noted that while there are national incentives to attract investments, the focus appears to lean more towards industry growth than sustainability. Regulation is primarily managed at the state level, where local officials are often more inclined to entice investment through tax incentives rather than enforce environmental oversight. A CEEW analysis revealed that out of 15 Indian states with data centre policies, only five address sustainability-related issues.
a recent S&P Global study warned that over 60% of India’s data centres might face significant water stress within this decade due to limited resources. A study conducted for India’s NITI Aayog suggested that demand for freshwater from AI data centres could reach as high as 1.7 trillion gallons by next year.
International Perspectives and Future Implications
The summit also drew world leaders, including French President Emmanuel Macron and Brazilian President Luiz Inácio Lula da Silva. Canada’s AI minister, Evan Solomon, attended as well, reflecting Canada’s interest in strengthening ties with India amid a backdrop of strained diplomatic relations. Solomon acknowledged similar concerns in Canada regarding data centres’ environmental impacts, particularly around water and energy consumption.
Despite the significant investment and enthusiasm surrounding AI development, the environmental costs of expanding data centres seem to be sidelined. Arpita Kanjilal, a researcher with the Digital Empowerment Foundation in Delhi, remarked on the lack of attention to these issues, stating that discussions around new data centres must include accountability for land, water, and energy usage, as well as the promise of job creation in local communities.
As India navigates the complexities of becoming a leader in AI, it faces the dual challenge of fostering innovation while ensuring sustainability in resource management. The future trajectory of India’s AI ambitions will depend significantly on addressing these environmental concerns and establishing frameworks that promote transparency and accountability in data centre operations.
Readers are encouraged to share their thoughts on the balance between AI growth and environmental sustainability in the comments below.
