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India's Energy Crossroads: LNG, Data Centers, and Grid Strain
13 Dec, 2025
Summary
- India's energy mix diversification is crucial for meeting rising demand.
- LNG imports are set to increase through the 2030s.
- Data centers and AI are significantly increasing electricity grid pressure.
India is navigating a complex energy transition, with increasing reliance on solar and wind power necessitating a diversified energy mix to meet peak demand. Liquefied natural gas (LNG) is becoming a cornerstone of this strategy, with imports expected to climb through the 2030s as global supply grows. This presents an opportunity for price-sensitive markets like India, contingent on infrastructure readiness.
The surge in data centers, driven by AI and digital services, is significantly escalating electricity demand and straining India's power grids. While global data center capacity is expanding, India is also becoming a preferred destination, exacerbating existing grid congestion issues. This highlights the urgent need for sustained investment in transmission infrastructure and grid resilience.
