India’s growing use of artificial intelligence (AI) and a fast expanding digital economy has led to a massive demand for round-the-clock (RTC) and reliable power supply for data centre operations.
Addressing the challenge of robust demand for sustainable energy solutions, industry experts and policymakers huddled together for a session on gas for AI transition in India at the India Energy Week (IEW) 2025.
The session explored strategies to position India as a global AI data centre hub while emphasising on the country’s climate goals for achieving net-zero emissions by 2070. AI-powered data centres demand uninterrupted energy supply.
Swapan Kataria, CEO and Co-founder of Crown LNG, highlighted the need for a diversified energy approach stressing on the significance of gas-based power solutions in shaping India’s future and its growth trajectory accelerated by AI.
“Well-balanced clean energy is a standout solution for colossal power demand of data centres. This will help India meet the surging needs of power to run AI-driven data centres and high-performance computing with reducing carbon footprints. Strengthening the gas ecosystem will not only drive economic growth and job creation but also enhance India’s standing in the global digital economy,” he added.
JM Financial, in an August 2024 report said, India has emerged as the 13th largest data centre market globally, with 163 data centres as of March 2024.
Peak power demand
Data centre capacity has experienced a CAGR of 28-32 per cent driven by IT sector, global capability centres (GCC), the expanding digital economy, and the shift to hybrid workplaces, it added.
As AI continues to reshape industries, ensuring energy security, economic growth, and sustainability remains imperative. Gas-based power solutions offer a strategic pathway to support India’s vision of becoming a global AI and data centre leader while advancing its clean energy transition, Kataria suggested
“Peak power demand as per National Electricity Plan is estimated to reach 366.4 GW by FY32, which is likely to be revised upwards. Hence, we estimate that 7-8 per cent of incremental peak power demand is likely to come from data centres,” JM Financial said.
Gas-based power plants provide a sustainable bridge by offering lower emissions, flexible ramp-up capabilities, and RTC energy security, making them a crucial part of India’s clean energy transition, Kataria stressed.
Gas remains a crucial transition fuel in India’s clean energy journey, providing stability while renewables scale up. A well-developed gas ecosystem will ramp up energy security and support industrial growth. India must capitalise on gas’s potential to achieve a balanced and sustainable energy mix.
