As India establishes itself as a global leader in Artificial Intelligence (AI) and the digital economy, the rapid technological growth has fueled a significant demand for reliable, 24/7 energy to support data centers. The ongoing digital transformation has placed increasing pressure on the country to secure sustainable energy solutions to meet the growing needs of this sector. To address this demand, industry leaders and policymakers gathered at the “Gas for AI Transition in India – GATI” session during the four-day India Energy Week 2025, which began in New Delhi on Tuesday.
The panel featured key figures, including Swapan Kataria, CEO and Co-founder of Crown LNG; Rachit Mohan, APAC lead for data center leasing at JL; Akshay Wadhwa, Business Head-Gas at Bharat Petroleum Corporation Limited; Rajesh K Mediratta, MD & CEO of Indian Gas Exchange; and Kapil Kapoor, Country Leader of Google Distributed Cloud for India and South Asia. The discussion was moderated by Arun Anand, author and tech columnist. These experts focused on strategies for positioning India as a global AI data center hub while aligning with the country’s ambitious climate goals, including achieving net-zero emissions by 2070.
The Role of Gas in India’s Energy Transition
Swapan Kataria, CEO & Co-founder of Crown LNG, stressed the importance of a diversified energy approach. He emphasized, “AI-driven data centers require a continuous energy supply. Gas-powered plants offer a sustainable solution with lower emissions, flexibility, and 24/7 energy reliability, making them integral to India’s transition to cleaner energy. Gas will play a key role in stabilizing the energy grid while renewables grow, ensuring a secure energy future for the nation. We are committed to expanding gas infrastructure to meet the growing energy needs of India’s 1.4 billion people, which will support industrial progress and energy security.”
India’s rapid progress in AI and other digital technologies has driven an exponential growth in data center demand. Industry estimates predict that global data center power demand will rise by 160 percent by 2030, primarily driven by AI, machine learning, and high-performance computing. This surge in data center requirements underscores the need for an energy infrastructure capable of supporting scalability while maintaining sustainability.
Aligning Energy Needs with Climate Targets
India’s commitment to its climate targets, including achieving net-zero emissions by 2070 and reducing greenhouse gas emissions by 45 percent by 2030, further stresses the importance of cleaner energy alternatives. As the country accelerates its digital transformation, it must balance rapid growth with its environmental goals. Gas-powered plants present a feasible option for reducing carbon emissions, particularly as they can support the integration of renewable energy sources like wind and solar.
Gas-powered plants are considered a cleaner alternative to traditional coal-based power, emitting lower levels of carbon dioxide (CO2) and pollutants while offering the required flexibility for data centers. This makes them a crucial part of India’s energy strategy as it seeks to reduce its carbon footprint while simultaneously meeting its growing energy demand.
Future Prospects for Gas in AI and Digital Infrastructure
The potential role of gas-powered plants in India’s future energy strategy is critical, as AI adoption accelerates across industries. While renewables will undoubtedly play a significant role in India’s energy transition, gas will remain integral in the near term, helping stabilize the grid and provide reliable power during times of peak demand. According to the experts, the reliability and scalability of gas-powered energy solutions will help smooth the transition to a more sustainable energy mix in the coming decades.
This session was part of the broader conversations happening globally, including at the Paris AI Summit 2025, where the transformative potential of AI was recognized across multiple sectors. As AI continues to reshape industries, including energy, healthcare, and education, the role of reliable and sustainable energy solutions like gas becomes increasingly important to ensuring the continued growth of data centers and other AI-driven infrastructure.
Conclusion
As India pushes forward with its digital transformation and establishes itself as a global AI hub, experts agree that gas-powered energy solutions will play a critical role in supporting the country’s data centers. With a growing demand for 24/7 energy to fuel AI technologies, gas offers a sustainable solution that aligns with India’s climate goals, helping to reduce emissions while ensuring a reliable power supply. This strategic approach, combining gas with renewable energy sources, will be vital in securing India’s energy future and continuing its digital and economic rise on the global stage.
