India’s data centres face AI power and water strain

India’s expanding generative AI ecosystem is raising concerns about the resource demands of data centres, particularly around electricity use, cooling, water consumption and noise. As AI adoption grows, the infrastructure needed to run large models is placing additional strain on national systems that must support sustainable digital growth.

Technology companies are being urged to publish standardised environmental information for AI models so businesses and consumers can better understand their resource requirements. An energy-efficiency label for AI could offer a simple way to compare models, similar to labels used for household appliances, while supporting clearer corporate accountability and more informed policy decisions.