Eyeing AI data centre boom, India open to encouraging SMR-led nuclear push

Key Highlights:

• The IT Ministry is considering encouraging the use of small modular reactors (SMRs) to power data centers due to the rise of Artificial Intelligence (AI).
• Data centers consume massive amounts of energy, potentially doubling by 2026, hindering companies' net-zero goals.
• India's data center market is estimated at $10 billion, with projected capacity additions of 795 MW by 2027.
• SMRs, with capacities between 30 MWe and 300 MWe, are seen as a commercially viable option for future nuclear energy.

Detailed Insights:

• Data centers face challenges in achieving carbon neutrality due to high energy demands, leading companies to explore nuclear energy.
• Renewable energy sources have limitations, making nuclear energy an attractive option for continuous power supply to support AI applications.
• India aims to enter the SMR manufacturing value chain to meet clean energy commitments and promote technology-led foreign policy.
• Amendments to the Civil Liability for Nuclear Damage Act, 2010 are being considered to ease liability provisions and attract foreign vendors.
• Allowing private companies to operate nuclear power plants in India could pave the way for foreign equity participation in future projects.

Key Concepts Involved:

• Small Modular Reactors (SMRs): Nuclear reactors smaller than conventional ones, offering flexibility and scalability.
• Data Centers: Facilities housing computer systems and associated components, requiring significant power.
• Civil Liability for Nuclear Damage Act, 2010: Indian law establishing liability and compensation mechanisms for nuclear accidents.