ANIRepresentative ImageAmerica's AI boom is constrained by an energy shortage and a fragmented electricity grid. India's data centre ambitions may be swamped by a glut - solar-power production is in overdrive, transmission lines are ready, but there's no good plan to offload the surplus.Over the last few months, mismanagement of the northern power grid has choked nearly 8 GWs of RE produced across Rajasthan and Gujarat, built at an estimated ₹16,000 cr by private generators. This has led to production cuts and revenue losses.Even though infrastructure is in place, National Load Despatch Centre (NLDC), under Grid Controller of India (GCI), has allowed about a 10th of the electricity to flow through these lines, fearing grid disturbances, voltage fluctuations or tripping of power lines.Such curtailment, equivalent to 18% of the average monthly solar generation of 13 TWh in Rajasthan alone, is threatening the commercial viability of generation projects. It's not just a local or zonal problem - it has national implications. Power, like water, flows in the path of least resistance. A problem in one part can easily spread across the plumbing.Most of these developers have PPAs. Even an under-industrialised state like UP is positioning itself as an upcoming data centre hub. Mumbai is a leading cluster. Reliable power supplies are a must for these projects to function with near-zero downtime. A millisecond of outage can crash servers, corrupt data or interrupt cloud services.Live EventsPower developers are bleeding to meet interest costs in what increasingly looks like a throwback to 2014, when several thermal assets were stranded post mine cancellations by the Supreme Court, which resulted in ₹2.5 lakh cr of debt turning bad.Information sharing by the grid operator has been scant. Several GoI committees have been formed, but no decisions have yet been taken. Had private power producers missed their timeline and delayed plant commissioning, GCI would have revoked their access to the grid. But just when the real test of grid operations and efficiency of utilisation was due, the mismanagement was exposed.In the past, planning, design, operations and management were all under the Power Grid Corporation of India (PGCIL). With responsibilities now divided among different government bodies, interdepartmental coordination is a must. But that's not happening.Globally, RE powers 50% of new data centres, and India is no exception. At the AI summit, Ashwini Vaishnaw said India is set to attract $200 bn of investment commitment in the next 2 yrs across the five layers of the AI stack, a lion's share of which will be in AI infrastructure and energy. A little more than half of that, he said, is from clean sources, one of the biggest advantages for India.India added 39.6 GWs - the highest-ever RE capacity addition in a single year in 10 mths of this fiscal. Transmission lines worth ₹1.2 lakh cr got awarded in FY25 alone, three times the last 10-yr average.But if power is curtailed or restricted on account of bureaucratic negligence, even after most critical building blocks are in place, then the business case trips up. The longer it goes on, the chances of capital and capacity taking flight become real.Indian grid operators must raise their game to manage RE supply that comes in troughs and peaks, as opposed to conventional thermal power sources. Without these key interventions, the data centre story may come undone.In some cases, there are technical workarounds. But, then, transparent sharing of data and specs among stakeholders is essential. A grid-protection scheme can also be put in place where the entire highway is not pre-emptively restricted. Curtailment happens only during a real emergency.Large-scale capacity additions by grid operators or learning from developed countries to optimise operations are long-term solutions. So is having batteries at substations. Dispatch mechanisms that are centralised, planned a day ahead, and auctioned via exchanges will also link them to market realities. Having markets for ancillary or frequency response, so that grid operators have tools to manage the grid instead of shedding generation, would also help.Most importantly, greater accountability and stricter compensation mechanisms are needed.In several OECD countries, grid connectivity has been the bane of the industry. In India, it's not the absence of a national grid but its management that is crippling investment plans.Add as a Reliable and Trusted News Source Add Now! Read More News onAI infrastructurerenewable energysolar power productionpower supply issuesdata centres in Indiapower generation curtailmentelectricity grid managementNational Load Despatch CentreIndian energy policypower gridRead More News onAI infrastructurerenewable energysolar power productionpower supply issuesdata centres in Indiapower generation curtailmentelectricity grid managementNational Load Despatch CentreIndian energy policypower gridPrime ExclusivesInvestm