AI needs power. India feels the strain

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In focus

• ​​Why India is turning to nuclear power to advance its AI ambitions
• ​​Why companies fail to make the most of their AI initiatives
• How Grab could solidify its dominance via Foodpanda acquisition

Hello reader,

Grab’s US$600 million all-cash acquisition of Foodpanda Taiwan signals the super app’s willingness to deploy significant capital beyond Southeast Asia, even as its core, transport-heavy business remains exposed to geopolitical risks like rising fuel costs.

The war in the Middle East has rattled markets, pushing crude oil above US$110 per barrel and underscoring how vulnerable transport-dependent platforms remain to external shocks. We previously detailed how the Southeast Asian tech scene is coping with this.

Moments like this also reignite an old question: How can countries secure stable energy? For many, including AI companies, the answer lies in renewables and nuclear power. Big Tech firms like Microsoft, Amazon, and Meta are already turning to nuclear as a reliable source of energy for AI.

India faces a similar challenge. As it pushes to become an AI hub, electricity is emerging as a key factor.

The country hosts about 20% of the world’s data but only 3% of global data-center capacity. As more infrastructure moves to India, power demand is expected to rise sharply. Reports say data centers alone could need an additional 8 gigawatts to 10 gigawatts by 2030 – enough to power several large cities.

In one of today’s top stories, I look at AI’s growing power crunch and how India is responding.

It’s worth pointing out, however, that energy isn’t the only challenge with AI. Many corporate AI efforts fail not because of the tools – they falter in execution. This Insights piece by a guest writer offers some advice on how companies can improve workflows, capabilities, and adoption when implementing AI initiatives.

Samreen Ahmad, journalist

Top Stories

1️⃣ The power problem behind India’s AI ambitions

Made by Miguel Cordon / Tech in Asia with the help of AI

The country’s AI dreams are tied to a power issue. Investments in data centers are indeed rising, with companies such as Microsoft, Google, and Reliance Industries pouring more money into AI infrastructure. But at the same time, AI-driven infrastructure is becoming far more energy-intensive, requiring new solutions like nuclear and small modular reactors.

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