Authorities cautioned against approving large-scale nuclear energy, AI projects

By A Representative  

A growing national debate over India’s expanding AI and data centre infrastructure has intensified, even as noted power and climate policy analyst Shankar Sharma urged the Union government and state authorities to exercise “high level due diligence” before approving large-scale nuclear energy projects aimed at meeting rising electricity demand from artificial intelligence and data centres.

In a detailed representation dated May 7 and addressed to senior officials including the Secretaries of Power, New and Renewable Energy, and Environment, Forest and Climate Change, as well as the Vice Chairperson of NITI Aayog and Chief Secretaries of all states and Union Territories, Sharma warned that aggressive expansion of nuclear power could have “huge environmental, economic and social implications” for a resource-constrained country like India.

The memorandum comes amid reports of increasing lobbying for new nuclear reactors and small modular reactors (SMRs) to supply uninterrupted electricity to India’s rapidly growing AI and data centre ecosystem. Sharma argued that the push for round-the-clock electricity to support AI, electric vehicles, air conditioning and digital infrastructure should not result in “knee jerk reactions” in policy making.

“In the pursuit of powering India’s booming ‘Digital Bharat’ economy, there should be an adequate level of due diligence in all the associated economic decision-making processes so as to ensure the lowest overall societal costs and the deployment of the most appropriate technology,” Sharma stated.

The representation was also copied to the Prime Minister, Karnataka ministers handling forests, water resources and energy, and the Karnataka Chief Secretary.

Sharma drew attention to a series of recent media reports highlighting the energy and water intensity of AI infrastructure and the emerging policy interest in nuclear-backed digital infrastructure. He referred particularly to concerns over the enormous water requirements of data centres during a period marked by heat waves, climate stress and fears of a weak monsoon.

Quoting an observation from a recent environmental commentary, Sharma said, “India is using water to build the machines that tell us we are running out of it,” calling the statement deeply ironic in a country already witnessing recurring water shortages across several states.

The policy analyst expressed concern that proposals for nuclear plants, pumped storage projects and new transmission corridors could lead to large-scale diversion of forests, agricultural land and freshwater resources. He warned that Karnataka, already home to the Kaiga nuclear power plant in Uttara Kannada district, had paid a “heavy ecological price” through diversion of dense forest land and water resources.

He also pointed to ongoing public agitations in Karnataka against major energy infrastructure projects, including the proposed 2,000 MW Sharavathi Valley Pumped Storage Project and reported efforts by NTPC to acquire land for potential nuclear facilities in districts such as Shivamogga.

“There have been reports of massive agitations in several districts of Karnataka against the efforts of NTPC to acquire large chunks of forest and agricultural lands to build nuclear power plants to meet the growing electricity demand for data centres,” Sharma said, cautioning that fresh proposals could intensify social unrest.

According to Sharma, India should instead prioritise low-impact and decentralised alternatives such as rooftop solar systems, medium-scale wind turbines, battery energy storage systems and community-based bioenergy projects. He also advocated wider use of recycled water and air-cooling technologies in data centres to reduce the “water-energy nexus” associated with AI infrastructure.

The representation argued that India’s future electricity planning must balance economic growth with ecological sustainability and social justice. Sharma stressed that all energy-related decisions should involve transparent public consultations and participation by civil society organisations.

“There can be no doubt that the country is in a difficult juncture as far as our electricity demand and supply scenario for the near future is concerned,” he noted. “A vastly diligent and responsible approach in choosing the most suitable technologies and options, which will lead our country to the lowest overall societal costs and on a green and sustainable pathway, has become absolutely essential.”

The memorandum was accompanied by a detailed discussion paper examining the nuclear-versus-renewables debate in the context of India’s projected AI-driven power demand by 2030.