From Chips to Reactors: India aligns AI growth with nuclear energy push
New Delhi: India’s artificial intelligence ecosystem is expected to significantly impact the country’s energy demand. This substantial increase necessitates a focus on clean, reliable, and continuous power sources. Union Minister for Electronics and IT Ashwini Vaishnaw has identified nuclear energy as a central pillar of the country’s future growth strategy.
Vaishnaw linked the expansion of electronics and AI-driven industries to energy infrastructure. He said the artificial intelligence ecosystem operates across three layers: applications, models, and infrastructure. The infrastructure layer, he noted, rests on chips and data centres.
As AI adoption accelerates, India will see the emergence of a data-centre-led economy. This will sharply increase the demand for stable base-load power. According to projections from the International Energy Agency (IEA), the ongoing scaling of AI systems in India could double the nation’s electricity demand by 2030.
According to the minister, nuclear energy is the only viable source that can supply high, continuous power to AI data centres without carbon emissions. This assessment formed the basis for the SHANTI Bill, which positions nuclear power as a cornerstone of India’s clean energy transition and economic transformation. Compared to renewables like solar and wind, nuclear energy offers a much higher capacity factor. This ensures a more reliable power supply. For example, Small Modular Reactors (SMRs) maintain a capacity factor of over 90 per cent. In contrast, solar energy combined with storage may achieve a much lower efficiency rate. This highlights why, as Vaishnaw stated, “If we want to build AI at scale and in a sustainable manner, nuclear power becomes unavoidable.”
Highlighting rapid advances in nuclear technology, the minister noted that large, conventional nuclear plants are now being complemented by factory-manufactured units that can be installed on relatively small parcels of land. Small Modular Reactors (SMRs) have already become a reality, while micro nuclear reactors—derived from designs used in nuclear-powered ships—are now moving towards practical deployment. These reactors typically generate between 15 and 30 megawatts of power and can be housed in container-sized, transportable units, making them easier and faster to deploy. He said such technologies could play a transformative role in powering remote and strategically important regions such as Ladakh and the Andaman and Nicobar Islands. They could also be deployed across critical infrastructure networks, including the railways. He pointed out that around 700 locations across the railway system currently depend on grid power, each of which could potentially host a dedicated nuclear unit in the future.
Advances in reactor safety have further strengthened the case for expanding nuclear power, the minister said. Unlike older reactors that relied on active cooling systems requiring uninterrupted external power, newer designs are based on passive cooling technologies.
In these systems, materials such as lead and molten salts automatically cool and solidify in the event of a malfunction, allowing the reactor to reach a safe shutdown without requiring human intervention or an external power supply. “Safety has seen a fundamental shift with these new technologies,” Vaishnaw said. With many of these innovations moving from laboratories to real-world deployment, the minister said India is now entering a phase where domestic manufacturing of nuclear reactors must be enabled. Manufacturing facilities are being established, projects are progressing on schedule, and production has already commenced, he said, positioning the country to meet the energy demands of a rapidly expanding AI and digital economy.
Vaishnaw underlined that the convergence of electronics, artificial intelligence, and clean energy will define India’s next phase of industrial growth. He added that aligning advanced technologies such as AI with sustainable power sources like nuclear energy would not only support economic expansion but also strengthen India’s strategic and technological self-reliance in the years ahead.
