Artificial intelligence is transforming industries worldwide, influencing sectors ranging from healthcare and manufacturing to financial services and logistics. Its role in the energy sector could be equally transformative. While the rapid expansion of AI applications, data centres and digital infrastructure is expected to increase electricity consumption, AI can also help make power systems more efficient, reliable and responsive. According to Ratul Puri, Chairman of Hindustan Power, AI should be viewed not simply as a source of growing electricity demand, but also as a technology capable of improving how energy is generated, managed and delivered.
The increasing use of AI is creating a greater requirement for dependable electricity. Data centres operate continuously and process massive amounts of information, while AI applications require uninterrupted and high-quality power. The International Energy Agency (IEA) estimates that data centres worldwide consumed approximately 415 TWh of electricity in 2024. By 2030, global data centre electricity consumption is projected to approach 945 TWh, largely because of the expansion of AI computing and digital infrastructure. As nations accelerate investments in digital capabilities, maintaining a stable and dependable power supply is becoming as essential as expanding computing infrastructure.
According to Ratul Puri, industries powered by AI will increasingly depend on consistent, high-quality electricity. This growing requirement also provides India with an opportunity to reinforce its energy infrastructure while enabling continued digital development. As investment in artificial intelligence expands, greater generation capacity, stronger transmission systems and modern grid infrastructure will be essential for supporting long-term economic growth.
Chairman Ratul Puri believes that renewable energy needs complementary technologies to deliver greater reliability. As he has observed, “doing solar without battery makes limited sense.” Solar generation is naturally concentrated during daylight hours, while electricity consumption continues into the evening and night. Battery Energy Storage Systems (BESS) can address this challenge by storing excess renewable electricity and releasing it when demand is higher. This can strengthen grid stability, reduce reliance on conventional generation during peak periods and make renewable power more dependable.
AI can further accelerate this transformation by enabling smarter electricity management. Advanced software can process large volumes of operational information, forecast power demand, predict renewable generation and optimise when batteries should charge or discharge. More accurate forecasting allows utilities to balance electricity supply and demand more effectively, minimise waste and make better use of renewable resources. The International Energy Agency has also highlighted AI's potential to improve grid operations and facilitate greater integration of clean energy into electricity networks.
India's power network is becoming increasingly complex as the country's renewable energy capacity grows. Integrating variable sources such as solar and wind requires quicker decision-making, improved forecasting and greater flexibility across the electricity system. AI can support utilities by analysing grid conditions in real time, identifying possible bottlenecks and anticipating operational issues before they result in disruptions. These capabilities can improve grid reliability while allowing larger volumes of renewable energy to be integrated into the power system.
For Ratul Puri, the impact of AI on energy goes beyond the question of rising electricity consumption. It is also about developing an energy ecosystem that is intelligent, flexible and capable of responding to future requirements. As artificial intelligence becomes more deeply integrated into businesses and industries, technologies that enhance forecasting, optimise energy consumption and strengthen grid resilience will become increasingly important to India's economic development.
India's energy transition will therefore require more than simply increasing renewable generation capacity. It will also depend on investment in battery storage, advanced transmission infrastructure and intelligent grid management systems capable of delivering clean electricity when and where it is required. AI has the potential to connect these different elements by improving operational efficiency throughout the electricity value chain.
As Chairman Ratul Puri has consistently emphasised, India's future power sector will depend on bringing together clean energy and intelligent technologies. AI can help utilities forecast demand with greater accuracy, integrate renewable generation more effectively, optimise battery storage and improve grid reliability. Together, these capabilities can contribute to a cleaner, more efficient and more resilient electricity system—one capable of supporting both India's ongoing energy transition and its rapidly growing digital economy.
About Ratul Puri
Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy generation. Over the years, Ratul Puri has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.