A major shift in India’s energy and technology landscape is underway, with nuclear power emerging as a key enabler for the country’s ambitions in AI and data centre growth.
The 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam achieved criticality on April 6, marking a milestone where a self-sustaining nuclear reaction begins. Power generation is expected to start in the coming months, supporting India’s push for energy independence and AI-driven infrastructure.
Following this, the government initiated bids for 220 MWe small modular reactors, signalling increased private participation as India targets a 3x expansion in nuclear capacity to 22.38 GW within 6 years.
Experts believe nuclear energy could become a “geopolitical moat” for India, especially for powering data centres that require stable, clean, and uninterrupted electricity. “Across the world this is becoming a bottleneck —the availability of compact footprint-clean and reliable 24/7 stable energy,” said Anil V Parab of Larsen & Toubro.
With this development, India has become only the 2nd country to achieve commercial-scale fast breeder capability. However, the country is still years away from reaching Stage 3 of its nuclear programme, which focuses on thorium-based energy and could provide energy security for nearly 200 years.
Policy reforms such as the SHANTI Act are opening the sector to private players like JSW Group, Adani Group, and L&T. Experts say aligning nuclear policy with data centre infrastructure could position India as a global AI hub.
“Data centres and GPU clusters don’t just need electricity—they need guaranteed, uninterrupted, carbon-neutral electricity at scale…That is a very specific ask, and nuclear is perhaps the only baseload source that checks all three boxes simultaneously,” said Piyush Somani of ESDS Software Solutions.
Unlike solar and wind, nuclear provides stable baseload power. However, its impact on data centres may become significant only after 2032, with larger scale benefits expected closer to 2040. In the near term, India is likely to adopt a hybrid energy approach combining renewables and nuclear.
Experts estimate that nuclear-linked data centre parks could emerge between 2030 and 2035. The next 5 years are seen as critical for policy and partnerships. “The next five years are the policy and partnership window, the actual compute infrastructure buildout will ride the wave that follows,” Somani said.
Challenges remain, including higher costs. Indigenous reactors cost about Rs 20-21 crore per MW, while imported ones are 3-4 times higher. Industry leaders also suggest reducing GST from 18% and classifying nuclear as green energy to lower financing costs.
Globally, rising AI demand is pushing nuclear energy back into focus. A 2025 report estimates data centre power demand could rise 160% by 2030, increasing the need for reliable energy sources.
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