NEW DELHI — The sprawling Bharat Mandapam convention centre in central New Delhi hosted tens of thousands this week for India’s Global AI Impact Summit, as tech leaders from OpenAI’s Sam Altman to Google’s Sundar Pichai descended on the capital to discuss the future of artificial intelligence. The summit, the first of its kind to be held in a developing country, was touted by India as a forum for business deals and a platform to discuss expanding investment in the sector.
Although approximately 300 Indian entrepreneurs showcased cheaper AI tools designed to address everyday problems, concerns were raised over the limited focus on the potential downsides of AI expansion, particularly its impact on already strained water and energy supplies. Data centres, essential for storing and processing the vast amounts of data required by AI, are notoriously water and energy intensive.
India’s existing data centre hubs are located in regions facing resource scarcity, a situation poised to worsen as companies like Microsoft, Amazon, and Google invest billions in the country’s AI sector. The city of Hyderabad, for example, is projected to face a daily water shortage of 909 million litres by 2026, yet Amazon is currently expanding its data centre operations there, according to reports. Microsoft is similarly planning to build an AI facility in Pune, a rapidly growing city southeast of Mumbai, which experienced water protests last year due to consistent shortages.
Google CEO Sundar Pichai, speaking at the summit, announced a fresh round of investments in India, including the “India-America Connect” initiative – a new fibre-optic route linking the U.S., India, and the Southern Hemisphere. This builds upon a previous $15 billion commitment to AI infrastructure. Google also launched a $30 million AI for Science Impact Challenge and a partnership with the Indian government to broaden access to advanced AI models for scientific research and education. Pichai emphasized India’s potential as a “full-stack player” in AI, predicting a transformation across all sectors.
Despite the enthusiasm, India currently lacks a national policy framework to guide data centre development and ensure transparency regarding water and energy consumption. According to the Council on Energy, Environment and Water (CEEW), a Delhi-based suppose-tank, there is a critical need for “frameworks for disclosure” to understand the true impact of expanding AI infrastructure. Shalu Agrawal, director of programs at CEEW, noted that the current focus is on attracting investment rather than mitigating potential environmental consequences.
A CEEW analysis revealed that only five out of fifteen Indian states with data centre policies even mention sustainability-related issues. An S&P Global study predicts that over 60 per cent of India’s current data centres will face high water stress this decade. A study for the Indian government’s NITI Aayog research arm estimated that AI data centres could demand as much as 1.7 trillion gallons of freshwater by next year.
India’s Minister of Electronics and Information Technology, Ashwini Vaishnaw, stated at the summit that he anticipates more than $200 billion in investment across the AI stack over the next two years. Prime Minister Narendra Modi echoed this optimism, declaring that “India is not scared” of AI and sees “fortune and a future” in the technology.
Prior to the summit, Google, Amazon, and Microsoft collectively pledged $68 billion for AI-driven projects in India, concentrating on cloud computing and new data centres. Google is investing $15 billion in a large AI hub and data campus in Visakhapatnam, partnering with Adani Group and Bharti Airtel.
Canada’s Minister of Artificial Intelligence, Evan Solomon, also attended the summit, seeking to strengthen ties with India and increase investment in technology and energy. Solomon acknowledged Canada’s own challenges with data centre impacts and the need for transparency regarding water and energy usage, stating that Canadians “wanna know: ‘Is it water-intensive? Is it energy-intensive? Will this have an impact on my electricity rate?’”
However, the potential environmental impact of a surge in data centres was not a central theme of the summit. Arpita Kanjilal, a researcher with the Delhi-based Digital Empowerment Foundation, highlighted the lack of attention paid to these concerns. Kanjilal, who has been speaking with communities affected by data centre demand, particularly in Telangana, noted that residents are primarily concerned with land acquisition, water supply disruptions, and job creation. A court case filed in August 2023 by 56 farmers and villagers against Microsoft India and other entities alleges illegal land occupation and improper waste disposal near a data centre site in Telangana.
As India positions itself as a major player in the global AI landscape, questions remain regarding the sustainability of its rapid expansion and the accountability of tech companies operating within its borders.
