Context:
• India’s rapidly expanding AI and cloud ecosystem is driving unprecedented electricity demand, prompting the government to explore Small Modular Reactors (SMRs) as a sustainable, reliable baseload power source for future AI data centres.
• This shift aligns with India’s goals under the Nuclear Energy Mission and the expanding digital and AI infrastructure landscape.
Key Highlights
- AI Data Centres Driving Massive Power Demand
- India’s data centre capacity is set to increase sharply by 2027 and 2030, fuelled by data consumption, Digital India growth, and AI adoption.
- AI server racks consume 80–150 kW each, far higher than traditional racks, adding huge pressure on grids.
- Major Locations Selected for AI Data Centres
- Google → Visakhapatnam
- Reliance Industries → Jamnagar
- Several other players (Yotta, AdaniConneX, Sify, CtrlS) are building AI-ready data centres across metros.
- SMRs as a Strategic Energy Solution
- SMRs are emerging as low-carbon, modular, flexible reactors suitable for round-the-clock power for AI data centres.
- India’s 100 GW nuclear capacity target by 2047 includes a strong push for indigenous SMRs.
- Legal and Policy Preparations
- Planned amendments to:
• Atomic Energy Act, 1962
• Civil Liability for Nuclear Damage Act, 2010 - Goal: enable private-sector participation and faster deployment of SMRs.
- Global Regulatory Trends
- Major global reforms focus on:
• Technology-neutral frameworks
• Streamlined licensing
• Cross-border harmonization via IAEA and NHSI
Significance
- Surging Electricity Demand Across Sectors
- Demand rising not just from data centres but also from:
• Electric Vehicles (EVs)
• Green hydrogen production
• 5G and Internet of Things (IoT) - India’s digital growth, localisation rules, and expanding cloud economy are intensifying energy pressure.
- Global Energy Consumption Trends
- Data centre electricity demand worldwide may jump from 460 TWh (2024) → 1,000+ TWh by 2030 → 1,300 TWh by 2035.
- AI-specific workloads are the primary accelerators.
- India’s AI Push
- Initiatives like the IndiaAI Mission, rising private investment, and hyperscale cloud expansion are driving AI infrastructure.
- State governments are partnering with firms for data parks, fibre connectivity, and power support.
- Advantages of SMRs for Data Centres
- Factory-built modules → quicker deployment
- Passive safety systems → safer than traditional reactors
- Accident-tolerant fuels → lower risk
- Baseload power → ensures uninterrupted 24×7 operations
- Smaller land footprint → suitable for industrial clusters
- India plans five indigenous SMRs by 2033.
- State-Level Role
- States can assist by:
• Identifying suitable nuclear sites
• Funding demonstration SMR projects
• Facilitating quick land acquisition
• Strengthening local safety & regulatory capacities
- Regulatory & Safety Challenges
- SMRs require new frameworks for:
• Transporting nuclear modules
• Managing waste safely
• Preventing radiation leaks
• Ensuring cybersecurity of AI-powered reactors - Global cooperation via IAEA and NHSI is crucial for harmonised safety standards.
Prelims Focus
- India’s nuclear power roadmap (100 GW target).
- IndiaAI Mission components.
Mains Relevance
GS 3 – Science & Technology
- SMRs as emerging nuclear technology
- AI infrastructure needs
- Energy–technology convergence
GS 3 – Economy
- AI-driven digital infrastructure
- Private-sector participation in nuclear energy
- Investment climate for AI ecosystems
GS 3 – Environment & Ecology
- Low-carbon energy transitions
- Nuclear safety and waste concerns
- Climate-friendly baseload solutions