How India can win the AI-energy race

India is entering a decisive phase of growth, driven by AI that has the potential to transform industry, infrastructure and energy systems. From advanced manufacturing to energy production, AI is already moving to the core of industrial operations. As it does so, the pressure is mounting to meet its significant power demands.

For decades, geopolitics has been a primary driver of energy supply chains. Today, it is pushing nations towards new energy pathways that offer the most viable route to energy security, self-sufficiency and industrial growth. But this relationship between geopolitics and energy is increasingly being reshaped by the meteoric rise of AI. Data centres already consume about 1.5% of the world's electricity, and by 2030 that number is expected to double.

India is well positioned for this moment. The country has rapidly expanded its electricity capacity to over 500 GW, with non-fossil sources now accounting for just over half of installed capacity-a significant milestone achieved ahead of national deadlines. Renewable deployments continue to rise at an extraordinary pace, supported by investments in grid technology, storage and initiatives such as green hydrogen. This diversified energy base provides stability as electricity demand accelerates.


But while AI is driving up power demand, it also offers a pathway to achieving unparalleled energy efficiency across operations. As operational data is unlocked, it reveals deep insights into how more output can be achieved with less power. AI is the tool that can identify this information and translate it into actionable outcomes. This marks a fundamental shift from automation to autonomy-where systems can see, think, act and learn-making decisions, adapting to changing conditions in real time and learning from experience.

The key ingredients for an AI-powered Digital India

AI-enabled autonomous operations in plants can optimise thousands of process parameters in real time. In data centres and other energy-intensive buildings, AI can dynamically manage cooling, lighting, power loads and microgrids. This transition to autonomy rests on three key building blocks:

1.Access to high-quality data drawn from operational control systems and edge equipment, which can be transferred to and analysed in the cloud.

2. Deep domain understanding and certification of how complex buildings and plants operate-knowledge that is critical to knowing how and where to optimise.

3. The right kind of AI. Deterministic AI delivers extremely high accuracy while processing data at speed-vital for mission-critical operations.

For instance, Honeywell Forge, a hardware-agnostic platform built on deep domain expertise, leverages all three elements to deliver scalable, customisable, AI-enabled solutions that can drive outcomes from vast operational datasets. For countries rapidly scaling industrial infrastructure, this vision of AI-powered autonomy offers a compelling opportunity to accelerate productivity through more energy-efficient operations.

As a country with a strong track record of adopting advanced technologies, India is well placed to embed AI-driven autonomy across its industrial and building infrastructure. In doing so, it can set a global benchmark for energy optimisation across industries as it pursues its long-term growth trajectory.

(Anant Maheshwari, president and CEO of Global High Growth Regions, Honeywell, will be speaking at ET NOW Global Business Summit 2026 at Taj Palace, New Delhi)