India’s rapid advancement in artificial intelligence (AI) is driving a substantial increase in energy demand, particularly for data centers that require continuous power. At the India Energy Week (IEW) 2025, industry leaders explored whether gas-based power could balance AI’s growth with environmental sustainability.
At the session discussion, Swapan Kataria, CEO of Crown LNG, emphasized the need for diversified energy sources. He suggested that gas-based power could serve as a sustainable alternative to coal and other fossil fuels. Gas plants offer lower emissions, flexible ramp-up capabilities, and round-the-clock energy security, making them a viable option for India’s clean energy transition.
As of March 2024, India ranked as the 13th largest data center market globally, with 163 data centers. As AI continues to transform industries, ensuring energy security and sustainability is crucial. A balanced clean energy mix, incorporating gas as a bridging solution, could drive AI-driven economic growth while reducing carbon footprints.
AI’s Escalating Energy Consumption and Emissions
AI-driven data centers consume significant amounts of electricity. In 2022, data centers accounted for approximately 2.5% to 3.7% of global greenhouse gas emissions, surpassing the aviation industry. The International Energy Agency estimates that global electricity demand from data centers could double between 2022 and 2026, fueled in part by AI adoption. This surge in energy consumption raises concerns about the environmental impact of AI technologies.
Comparing India’s Approach to the West
Western nations have rapidly developed AI infrastructure, often relying on fossil fuels, leading to increased carbon emissions. Many are now working to integrate renewable energy sources into their systems. India has the opportunity to incorporate sustainability into its AI expansion from the outset. By leveraging gas-based power as a transitional solution, India could position itself as a global leader in sustainable AI development.
Strengthening India’s AI Future
As AI adoption surges, India faces the challenge of meeting energy demands while minimizing environmental impact. Gas-based power offers a promising bridge to a cleaner future. While not a permanent fix, it could play a crucial role in making India’s AI revolution both powerful and sustainable. The world will be watching to see if India can lead the way in responsible AI energy management.
