In an era where Artificial Intelligence (AI) is reshaping economies, governance and society at large, ensuring AI sovereignty has become a crucial strategic priority for nations. AI sovereignty refers to a nation’s ability to independently develop, deploy and regulate its AI technologies in alignment with its values, security needs and legal frameworks. Countries such as China and the United States have already established their foothold in AI with sovereign AI systems like DeepSeek and OpenAI, demonstrating the significance of national control over AI development. For Bharat, a country with a burgeoning digital economy and a vast repository of user data, AI sovereignty is no longer an option but a necessity.
Significance of Data Localisation
A key prerequisite for AI sovereignty is data localisation, which mandates that data generated within a country’s borders be stored and processed within its jurisdiction. By localising data, Bharat can ensure greater control over critical information, protect user privacy and enhance national security. AI models are trained on vast datasets and unrestricted access to national data by foreign entities could lead to economic and security vulnerabilities. Many nations have already implemented stringent data localisation laws to protect their digital assets, and India must follow suit.
The Indian Government has taken steps in this direction with policies such as the Personal Data Protection (PDP) Bill and sector-specific regulations requiring local storage of sensitive data. However, full-fledged AI sovereignty demands robust infrastructure to support data localisation at scale. This necessitates a significant expansion in India’s data centre capabilities, which must be both scalable and energy-efficient.
As AI applications grow in complexity, the computing power required for data storage and processing increases exponentially. Traditional data centres consume enormous amounts of electricity, raising concerns about sustainability and energy security. A viable solution for Bharat is the establishment of mid-size data centres powered by nuclear energy, leveraging Small Modular Reactors (SMRs) to meet the increasing demand for AI-driven data processing. SMRs offer several advantages, including a compact footprint, enhanced safety features, and a stable, clean energy supply, making them ideal for AI-centric data centres.
Developing nuclear-powered data centres aligns with India’s commitment to clean energy and reduces dependence on fossil fuels. The Indian Government, in collaboration with the Defence Research and Development Organisation (DRDO) and private-sector partners, can establish SMR-powered data centres under a Public-Private Partnership (PPP) model. Such an initiative would not only bolster AI sovereignty but also create a robust energy infrastructure to support future digital advancements.
Strategic Benefits for Bharat
- Enhanced National Security: Localised data storage prevents foreign entities from accessing or exploiting critical information, reducing cybersecurity threats.
- Economic Growth: A strong AI ecosystem will attract investments, spur innovation, and generate employment in AI research, development, and deployment.
- Energy Security: Nuclear-powered data centres provide a sustainable and uninterrupted power supply, reducing dependence on unreliable energy sources.
- Regulatory Autonomy: AI sovereignty enables India to shape AI ethics and governance policies in alignment with national interests rather than adhering to global norms dictated by foreign tech giants.
Understanding Sovereignty Traps
Even countries with abundant resources and access to AI technology must navigate sovereignty traps carefully. A major concern is that governments pushing forward with sovereign AI might risk undermining international collaboration meant to ensure AI is used in a transparent and equitable manner. AI is a global endeavor, and isolating its development within national borders can lead to fragmented technological ecosystems, reducing the safety and reliability of AI models.
A clear example of this risk is when AI systems trained on a local set of values are used for national security or law enforcement. If such systems are not designed with cultural and contextual sensitivity, they may misinterpret behaviours that do not align with local norms as potential threats, leading to biased and unfair decision-making. This issue can create ethical dilemmas and international tensions, making AI sovereignty a double-edged sword.
India’s Standing in AI Strategy
According to the Tortoise Media Global AI Index 2024, which evaluates Government strategies and infrastructure for AI development across different countries, India has made significant progress in its AI strategy. The rankings are based on factors such as the depth of commitment, strategic planning, government spending on AI, and the infrastructure available to execute AI policies.
India has demonstrated strong commitment to AI through initiatives such as:
- National AI Strategy (NITI Aayog’s AI for All), which aims to make AI accessible and beneficial for all sectors.
- Increased investments in AI research, including collaboration with academia and private enterprises.
- Emphasis on AI-driven governance, particularly in sectors like healthcare, agriculture, and smart cities.
While India has performed fairly well in developing an AI strategy, its AI infrastructure needs significant improvements in order to become a global leader in AI. This includes:
- Chip Manufacturing: Establishing domestic semiconductor production to reduce reliance on foreign imports.
- Data Centers and Data Localisation: Expanding data center capacity and enforcing localised data storage policies to enhance security and computational efficiency.
- Compute Capacity: Investing in high-performance computing resources to support advanced AI research and applications.
AI sovereignty is crucial for India’s digital future, but it must be pursued with caution. Avoiding sovereignty traps by maintaining ethical AI standards, fostering international cooperation, and ensuring transparency will help India build a strong and responsible AI ecosystem. As the global AI landscape evolves, India has the opportunity to set an example by demonstrating how sovereign AI can be developed without compromising safety, equity, and collaboration on a global scale.
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