India sets strategic path for AI growth with nuclear energy investments

New Delhi [India], February 24 (ANI): In a world where artificial intelligence (AI) is driving disruption across industries, India is making strategic moves to establish itself in the AI ecosystem.

The nation’s plan hinges on an integrated approach that builds out the entire AI stack–from semiconductor fabrication and data centre infrastructure to foundational models and energy management– powered by a focus on nuclear energy.

During a recent interaction at the Kashi Tamil Sangamam in Varanasi, External Affairs Minister Dr S Jaishankar highlighted India’s historical role as a technology provider to the world.

He also noted the participation of Prime Minister Narendra Modi at the AI Action Summit in Paris, where industry titans, government heads, and academia gathered to discuss the future of AI.

India is aiming to develop a robust AI stack, encompassing semiconductor fabrication facilities to bolster national security and diversified supply chains, positioning itself as a sound player in the global semiconductor industry.

As of recent, India also plans to invest capital in the development of low-cost, sovereign large language models (LLMs).

During a press conference in January speaking on India’s AI mission, Union Minister of Electronics and IT Ashwini Vaishnaw stated, “We have created the framework, and it is being launched today. Our focus is on building AI models that maintain Indian context and culture”.

One of the most ambitious moves announced in the Union Budget of 2025-2026 is the plan to allocate Rs 20,000 crore for research and development of Small Modular Reactors (SMRs) and to exponentially increase India’s nuclear capacity to 100 GW by 2047.

The rationale is clear: AI requires vast amounts of computing power, which, in turn, demands reliable and cost-effective energy. Nuclear energy is seen as the ideal source to power AI’s computational and data center demands.

Continuous investments in upgrading India’s nuclear technology are expected to provide robust and sustainable energy for AI infrastructure, keeping the country competitive in the AI race. The strategic investment in nuclear energy comes at a time when nuclear power is regaining prominence worldwide.