PM Modi’s 100 GW nuclear target: Why India needs more power for AI, chips and data centres

India is setting its sights on nuclear power to keep up with the escalating electricity demand driven by sectors like semiconductors, artificial intelligence, and data centers. Prime Minister Narendra Modi has set a goal of commissioning five new nuclear reactors this decade and expanding nuclear capacity to 100 gigawatts by 2047.

At his Independence Day speech, Modi highlighted the growing demand for electricity in the era of technology, stating that sectors such as chips, AI, and data centers would require substantial amounts of power. The passage of the SHANTI Act in the previous year has opened the door for private participation in India's regulated civil nuclear power sector, attracting interest from international suppliers like Russia, the US, and France.

The Department of Atomic Energy (DAE) released draft rules under the act, outlining regulations for the nuclear power ecosystem, including private participation, captive generation, licensing, safety oversight, and nuclear liability. While India's indigenous pressurized heavy water reactors (PHWRs) will remain the backbone of its nuclear expansion plans, small modular reactors (SMRs) are being considered as a promising technology for faster deployment and grid flexibility, particularly in balancing the intermittent nature of renewable energy sources.

SMRs also have the potential to offer carbon-neutral baseload power. India is pursuing a two-pronged approach to achieve its nuclear energy target, combining the construction of large-capacity reactors with the development of SMRs, which are seen as a cost-effective alternative to large light water reactors. The country is also exploring domestic SMR manufacturing, with a budget of Rs 20,000 crore allocated for the Nuclear Energy Mission to research, design, develop, and deploy SMRs.