AI-Driven Data Centers in India Lean on Gas-Based Energy Solutions, Say Experts

New Delhi, February 12, 2025: As India is fast emerging as a global leader in Artificial Intelligence (AI) and digital economy, the unprecedented technological advancements have ignited a massive demand of round the clock reliable power supply to operationalize data centers.

Addressing the challenge of robust demand of sustainable energy solutions, industry experts and policymakers huddled together for an insightful session on “Gas for AI Transition in India – GATI” held at the four-day India Energy Week 2025 which kickstarted at the Yashobhoomi in the national capital on Tuesday.

The session was participated by industry veterans, namely Swapan Kataria, CEO & Co-founder, Crown LNG, Rachit Mohan, APAC lead of data center leasing at JL, Akshay Wadhwa, Business Head-Gas, Bharat Petroleum Corporation Limited, Rajesh K Mediratta, MD & CEO, Indian Gas Exchange; and Kapil Kapoor, Country Leader, Google Distributed Cloud (India and South Asia). The panel discussion was anchored by Arun Anand, Author and Tech Columnist.

The speakers explored strategies to position India as a global AI data center hub while emphasizing around the nation’s climate goals of achieving net-zero emissions by 2070.

Swapan Kataria, CEO & Co-Founder, Crown LNG, highlighted the need for a diversified energy approach: “AI-powered data centers demand uninterrupted energy supply. Gas-based power plants provide a sustainable bridge by offering lower emissions, flexible ramp-up capabilities, and round-the-clock energy security, making them a crucial part of India’s clean energy transition. Gas remains a crucial transition fuel in India’s clean energy journey, providing stability while renewables scale up. We are committed to boost gas infrastructure and willing invest to meet the demand of power that the country with 1.4 billion requires.  A well-developed gas ecosystem will ramp up energy security and support industrial growth. India must capitalize on gas’s potential to achieve a balanced and sustainable energy mix.”

With AI adoption surging across industries, data centers are expected to witness exponential growth. According to industry projections, global data center power demand will increase by 160 percent by 2030, largely driven by AI, machine learning, and high-performance computing. This surge necessitates a resilient energy infrastructure that balances power scalability with sustainability.

India’s ambitious net-zero emissions target by 2070 and commitment to reducing greenhouse gas emissions intensity by 45 percent by 2030 underscore the urgency for cleaner energy alternatives. Gas-based power plants present a viable solution, ensuring lower carbon footprints while facilitating the integration of renewables like wind and solar.

The event is organised amidst global echoing of the Paris AI Summit 2025 focusing on its transformative role in several sectors for public good.