AI’s Energy Paradox: Can Artificial Intelligence Help Solve The Power Crisis It Is Creating?

As AI drives surging demand for data centres and round-the-clock power, it simultaneously holds the potential to make energy systems smarter and more efficient. This BW Businessworld feature explores both sides of the equation for India, from the risk of local grid congestion as data centre hubs expand across Mumbai, Bengaluru and Hyderabad, to AI’s ability to reduce industrial energy waste, improve renewable forecasting and modernise electricity networks. Featuring insights from Ajay Varma, Managing Partner at 0101.Today, who notes that while AI won’t eliminate the energy it consumes, it can dramatically reduce waste across the broader economy, the article makes a compelling case that India’s AI growth and energy transition must be planned together and not in silos.