About the Issue: AI and Energy in a Fragmented World Order
The contemporary world order is witnessing a shift from a rules-based multilateral system to a fragmented, power-centric and transactional framework. In this emerging order, Artificial Intelligence (AI) and energy security have become the primary determinants of national power, strategic autonomy, and geopolitical influence. Control over technology stacks, data, energy resources, and supply chains is increasingly shaping global alignments, replacing ideology-driven alliances.
Core Content: AI–Energy Nexus Reshaping Global Power
- From Rules to Transactionalism: Global governance is giving way to interest-based, hierarchical relations where power flows from military strength, economic capacity, and technological dominance.
- Energy as the New Strategic Bottleneck: Rapid expansion of AI data centres has sharply increased electricity demand, making reliable and affordable energy a critical input for technological leadership.
- Rise of ‘Sovereign AI’: Nations are prioritising domestic control over data, semiconductors, cloud infrastructure, and AI models, treating AI as a national security asset.
- Shifting Alliances: Global partnerships are increasingly organised around shared technology ecosystems (US-led, China-led, etc.) rather than shared political values.
- AI as a Growth Engine: AI is transitioning from experimentation to a driver of productivity, GDP growth, and state capacity.
- Twin Transitions: While AI intensifies energy demand, it is also being deployed to optimise grids, integrate renewables, and enhance energy efficiency.
Challenges Emerging from the AI–Energy Power Shift
- Energy Stress and Infrastructure Gaps: Existing grids are ill-equipped to handle AI-driven demand, risking energy shortages and economic slowdown.
- Supply Chain Fragmentation: Competition over semiconductors, rare earths, and critical minerals is deepening geopolitical and economic fragmentation.
- Inequality Between Nations: Countries lacking capital, technology, or energy resources risk becoming perpetual “rule-takers”.
- Weak Global Governance: Absence of a cohesive global framework on AI ethics, data governance, and energy transition may increase instability.
- Security Risks: Concentration of AI and energy assets increases vulnerability to cyberattacks, sabotage, and coercive diplomacy.
Way Forward
- Invest in Sustainable Energy Capacity: Expand renewables, nuclear energy, and grid modernisation to meet AI-era power demands.
- Develop Sovereign but Open AI Ecosystems: Balance strategic autonomy with international collaboration to avoid technological isolation.
- Strengthen Middle-Power Coalitions: Countries like India should leverage data, talent, and digital public infrastructure to shape global norms.
- Promote AI for Energy Optimisation: Use AI to improve grid resilience, energy storage, and renewable integration.
- Build Issue-Based Global Cooperation: Foster flexible coalitions on AI safety, climate action, and critical minerals rather than rigid alliances.
Conclusion
In a fragmented global order defined by power rather than principles, AI and energy together constitute the new grammar of geopolitics. Nations that can secure sustainable energy, control AI ecosystems, and integrate both into their development strategies will shape the emerging world order. For India, this moment offers an opportunity to emerge as a rule-shaper by aligning technological ambition with energy security and strategic autonomy, while contributing to a more resilient and balanced global system.
| Question for Practice How in the fragmented global order, AI and energy will redefine the rules of power? |
Source- The Indian Express
