Will India's AI Data Centers Trigger Energy and Water Crises?

India is rapidly expanding its AI data centers to catch up in technology, but critics warn these megaprojects will strain energy and water resources without creating lasting jobs. The country plans to invest $500 billion in new data centers with 1.500 MW capacity, aiming to boost chip production by 40% by 2025. However, this push faces delays in securing ASML chip machines and competition from China and the U.S. in rare earth elements. India's data centers could accelerate local chip manufacturing by TSMC and other global players, but they may also deplete 25% of the country's water resources.

While India's strategy takes a step toward tech sovereignty, the long-term risks of energy and water shortages could reshape global semiconductor supply chains.