India’s Economic Survey 2024–25 has raised significant concerns about the environmental impact of artificial intelligence (AI), particularly regarding its substantial consumption of energy and water resources. The survey warns that the rapid democratization and expansion of AI technologies could jeopardize critical national priorities, including energy and water security, housing, and food availability, if proactive measures are not implemented to manage their resource demands. Business News Today

🔍 Key Findings from the Economic Survey

• Resource-Intensive AI Models: The survey highlights that large-scale AI models, especially those used in generative applications, require immense computational power. This translates to significant electricity consumption and water usage, primarily for cooling the data centers that host these models.Food & Water Watch

• Threat to Essential Services: Uncontrolled AI expansion could strain India’s energy and water infrastructure, potentially affecting the delivery of essential services and undermining efforts to ensure food and housing security.

• Call for Sustainable AI Practices: The document emphasizes the need to scale down AI’s resource consumption. It advocates for the development of more efficient AI systems that align with the country’s sustainability goals.

🌍 Global Context and Environmental Impact

The concerns raised in India’s Economic Survey are echoed globally. According to the International Energy Agency (IEA), data centers worldwide consumed approximately 415 terawatt-hours (TWh) of electricity in 2023, accounting for about 1.5% of global electricity demand. This consumption is projected to nearly triple by 2035, reaching 1,200 TWh. CSIS+1Reuters+1

Additionally, AI-driven data centers are significant water consumers. Estimates suggest that by 2027, global water withdrawals for these centers could increase by 4.2 to 6.6 billion cubic meters, equivalent to four to six times Denmark’s annual water consumption. Reuters+5World Economic Forum+5The Guardian+5

⚠️ Implications for India

Given India’s existing challenges with water scarcity and energy supply, the unchecked growth of AI infrastructure could exacerbate these issues. The Economic Survey underscores the importance of balancing technological advancement with environmental sustainability to prevent potential crises in essential sectors.

✅ Recommended Actions

To mitigate the environmental risks associated with AI, the following measures are recommended:

• Develop Energy-Efficient AI Models: Invest in research and development of AI systems that require less computational power without compromising performance.

• Implement Sustainable Data Center Practices: Adopt cooling technologies and energy sources that minimize environmental impact.

• Policy and Regulatory Frameworks: Establish guidelines that promote responsible AI development, ensuring alignment with national sustainability objectives.The Guardian

• Public-Private Partnerships: Encourage collaboration between government bodies and private enterprises to foster innovation in sustainable AI technologies.