AI adoption soars in India, but energy demands and infrastructure challenges threaten sustainability goals, reveals pure storage survey

Pure Storage has released a new report highlighting the preparedness of enterprises in India to compete in a business landscape characterized by two key trends – AI and sustainability. The report, “India’s AI Journey: Balancing Innovation with Sustainable Growth” found that while AI is a top priority, companies are concerned about its impact on energy consumption and that meeting their ESG goals will become impossible without a modern robust IT infrastructure.

Industry significance:

AI is rapidly emerging as a transformative power across various industries in India, driven by the urgent demand for innovation, increased productivity, and improved customer experiences. A recent report by TeamLease Digital indicated that AI could contribute approximately $450-500 billion to the nation’s GDP by 2025, representing 10% of India’s ambitious $5 trillion GDP goal. However, AI is also putting a strain on data centers by requiring more resources such as electricity, water and space. According to the International Energy Agency, data centers already account for 1 to 2 percent of global energy consumption, AI will push this up even more.

Survey highlights:

India’s AI Momentum gaining traction: Over the next three years, 48% of respondents have prioritized AI to maintain their competitive edge. Currently, 52% of organisations have deployed AI technologies, 35% are piloting them, and 12% are still exploring integration strategies.
Current AI applications: AI is being leveraged across various functions, including marketing and sales, IT operations and fraud detection, reflecting its versatility. Today, 64% of the organizations use AI for their virtual assistant/chatbot function, 45% use AI across IT operations and cybersecurity reflecting the critical need for secure and efficient IT environments and 40% use it for new product development (NPD) and innovation.

AI adoption across sectors: The banking, financial services, and insurance (BFSI); technology, media, and telecommunications (TMT) sectors lead in AI adoption with 68% and 70% rates, respectively, while sectors like government, healthcare, and manufacturing show more cautious adoption, with higher percentages in the piloting phase. While tech and media sectors prefer cloud-based AI solutions, BFSI and government sectors lean towards on-premises solutions due to compliance and security concerns.
IT infrastructure is a key challenge in AI deployment: To prepare for AI, 74% of organisations plan to upgrade data management tools and processes, 65% plan to enhance data storage infrastructure, and 61% plan to invest in data security and compliance to ensure secure and efficient data flows.
Rising energy consumption and sustainability concerns: As AI technologies expand, the demand for supporting infrastructure has surged. 42% of organisations report a doubling in compute power needs, while 41% have seen their storage demands double. This growth also drives higher energy consumption, with 74% of organizations concerned about AI’s impact on energy use and ESG goals.

Executive insight:

“As AI adoption surges in India, organizations are driving innovation across sectors, but they struggle with rising energy demands and meeting ESG goals. Our report highlights the urgent need to invest in robust, energy-efficient systems that can power AI-driven growth while securing a greener future for all.” – Ajay Singh, Chief Product Officer, Pure Storage