India’s increasing energy requirements are moving into a new era—one not just defined by industrial growth but also by the rapidly growing needs of data centers fueling AI, cloud computing, and digital infrastructure. With renewable energy still unreliable and coal-fired power under fire for its environmental footprint, liquefied natural gas (LNG) has come as a cleaner and more reliable bridge fuel.
Against this backdrop, the India-US LNG alliance is moving at a brisk pace. Ranging from such large-scale infrastructural investments as Crown LNG’s ₹9,000 crore Kakinada terminal to GAIL’s search for stakes in American LNG, the two countries are harmonizing strategic and commercial interests.
As LNG may possibly fuel India’s future digital economy, incorporating AI-driven applications and hyperscale data centers, this transatlantic partnership is about more than mere energy—it’s technological sovereignty, climate resilience, and economic security in the long term.
Crown LNG’s offshore terminal
Crown LNG’s future offshore terminal at Kakinada is more than another infrastructure project—it’s a pioneering floating LNG import facility designed for India’s unforgiving east coast waters. Scheduled to be operational by 2029, the ₹9,000 crore project will incorporate a gravity-based structure (GBS), rendering it specially cyclone- and monsoon-interference-proof.
In contrast to traditional onshore terminals, this configuration reduces environmental interference and expedites construction schedules. The terminal will have the capacity to process 7.2 million tonnes of LNG per year and cater to high-demand areas in southern and eastern India. It also illustrates Crown LNG’s wider vision of developing robust, modular energy infrastructure for developing economies, including LNG-to-power integration with gas-based power plants and industrial clusters.
AI data centers: New frontier for LNG
India is quickly evolving into an AI and cloud computing hub, with hyperscale data centers emerging in Hyderabad, Mumbai, and Chennai. Those centers demand continuously available, 24/7 power with minimal downtime—a requirement solar and wind cannot always fulfill. LNG provides a cleaner and more consistent alternative to diesel or coal-powered backup systems.
Crown LNG CEO Swapan Kataria contends that powering specialized power units for AI data centers with LNG will upend India’s digital ecosystem while accomplishing decarbonization objectives. The government’s emphasis on “Digital India” and semiconductor self-sufficiency also fits this strategy, as LNG offers a scalable and stable energy foundation for innovation, R&D parks, and AI training centers.
Strengthening India-US energy relations
India and the US are using their increasing energy partnership to attain strategic and commercial objectives. GAIL’s talks to buy a 26% stake in an American LNG project are an unequivocal indication of India’s long-term bet on US gas. The deal will fetch India more than 1 million metric tons of LNG every year from 2029, which will diversify India’s supply basket away from Qatar and Russia.
It also draws on the Modi-Trump era energy cooperation model, which focused on increasing US energy exports to help cut its trade deficit with India. For Washington, it is not just an economic but a geopolitical opportunity—securing India more deeply in a Western-aligned energy system as a bulwark against China’s increasing influence in the region.
Infrastructure and Policy
Though LNG imports are destined to increase, India’s indigenous infrastructure has to accelerate as well. Though it has 20,000+ kilometers of natural gas pipelines, there are gaps—especially on the eastern and northeastern sides. Accelerating projects such as the Urja Ganga pipeline and tariff revisions to enhance affordability are fundamental actions.
Further, policies need to facilitate simpler land acquisition for terminals as well as ensure private sector involvement in LNG bunkering, small-scale retail, and gas-based power plants. Government policies such as the National Gas Grid and Energy Security Strategy 2047 provide a template, but effective implementation will decide if LNG can really be India’s energy bridge to an AI-driven future.
