India's AI growth risks exacerbating severe water stress as data centers, crucial for AI infrastructure, consume vast amounts of water. Cities like Hyderabad and Bengaluru, already facing shortages, are becoming AI hubs. While AI promises inclusive growth, its physical demands strain local resources, necessitating urgent policy reforms and location-specific planning to balance digital ambitions with sustainable resource management.

India is set for rapid data centre growth driven by AI demand, demographics, and strategic location, says Goldman Sachs.

India's AI ambitions face a critical water challenge, with data centre expansion demanding significant resources. While on-site cooling has drawn public scrutiny, the larger water…