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scienceeconomy

AI & DIGITAL DIVIDE

By KALPANA S·June 5, 2026
6 min read
AI & DIGITAL DIVIDE

New Bosses of the Digital Age

When the world talks about Artificial Intelligence (AI), it is not merely discussing a technological breakthrough. At its core, AI raises fundamental political questions: Who holds power? Who controls knowledge? And who will shape the future of the global economy? Every major technological revolution has reshaped the balance of power in the world. The Industrial Revolution strengthened European imperialism. The oil economy gave a handful of nations enormous geopolitical influence as the Old boss. Today, Artificial Intelligence and digital infrastructure are assuming a similar role in determining economic and political power as the new boss.

During the colonial era, the land, natural resources, and labor of the Global South were used to fuel the growth of global capitalism. While the form of extraction has changed, its underlying logic remains remarkably similar. Data, computing power, cloud infrastructure, semiconductor technology, and intellectual property have become the strategic resources of the twenty-first century.

Data Centers or Digital Colonies? 

India, Africa, and other developing regions possess some of the world's largest digital populations and fastest-growing internet markets. The data generated by billions of people has become the foundation upon which modern AI systems are built. Yet the value created from that data, along with the authority to govern its use, remains concentrated in a small number of corporations and technologically dominant states.

Across India and Africa, massive data centers, cloud campuses, and digital infrastructure projects are being promoted as symbols of development and modernization. However, an important question is often overlooked: whose interests do these systems ultimately serve?

Land, electricity, water, and local resources are deployed to support these facilities. Yet ownership, patents, technical expertise, and the overwhelming share of profits frequently remain concentrated in corporate headquarters located elsewhere. As a result, many countries risk becoming suppliers of digital raw materials rather than centers of innovation and value creation.

The Water Crisis 

India generates nearly 20% of the world's data but hosts only 3% of global data centre capacity. To become an AI superpower, conglomerates such as Reliance and Adani have announced investments exceeding $210 billion in AI-ready digital infrastructure. But behind the promise of technological progress lies an enormous and often overlooked cost: water. A single 100-megawatt data centre consumes roughly 20 lakh litres of water every day—enough to meet the daily needs of about 6,500 households. Most Indian facilities rely on evaporative cooling systems, where water absorbs heat from servers and nearly 80% of it is lost through evaporation. According to Karnataka IT Minister Priyank Kharge, every megawatt of data centre capacity requires around 25 million litres of water annually. With India's current operational capacity of 1.5 gigawatts, data centres already consume an estimated 37.5 billion litres of water every year, even before the sector's planned six-fold expansion. 

As AI expands, India faces a fundamental question: should scarce water sustain communities, farms, and ecosystems—or cool the servers powering the digital economy for MNCs?

The Telangana & Bangalore Experiments

The irony is stark: nearly 75% of India's data centres are located in already water-stressed regions. At the same time, 600 million Indians face severe water stress and 163 million lack access to clean water. In Telangana's Mekaguda, farmers allege groundwater contamination and land encroachment affecting nearly 20,000 people. In Tusiana village, Uttar Pradesh, borewells have reportedly been deepened by 180 to 250 metres as groundwater levels decline. Workers and residents continue to report deep industrial borewells operating inside data centre campuses with little regulatory action.

Much like earlier colonial economies that exported minerals, agricultural products, and labor, today's digital economy often extracts data and low-cost digital labor from the Global South while concentrating high-value research, design, intellectual property, and decision-making power in a handful of global hubs. In this sense, the digital economy risks reproducing old patterns of dependency under a new technological guise.

Read between the lines

International news media is busy portraying struggles against AI and data centres as extremist, anti-science, or irrational. In reality, the struggle is not against AI or technology itself , the struggle is against this  capitalist system that deploys technology only to maximize profits while destroying livelihoods of millions, displacing communities and endangering the future of the planet. There are real and legitimate issues that deserve serious attention , from Bolivia to Plachimada history has shown the true face of Big Capital in the Global south.

Many of the people most affected live in the Global South in Asia , Africa and latin America and belong to working-class communities whose livelihoods, resources, and environments are directly impacted by large-scale technological expansion. Environmental degradation,  land acquisition of communities, layoffs, retrenchment, and on one end and  At the same time, Big TECH companies and billionaires continue to expand their AI empires while benefiting from the labour of workers and the exploitation of natural resources. People are not blind to allegory and they resist for their survival and existence, The struggle for ecological justice and technological access cannot be separated from class struggle—they are hand in hand for a more democratic future.

Not all struggles are anti-scientific or regressive. In fact, the demand for ecological regulations, democratic AI governance, worker adaptation and protection, workers' cooperatives in big tech, and people's forums for public oversight represents a scientific and democratic effort to restore balance between technological progress, social justice, and environmental sustainability. People are not opposing innovation; they are demanding accountability , because they who benefits from it, and who bears its costs

AI's Future: For a Few or For All?

The rapid expansion of the AI ecosystem and the concentration of power within it are not simply the result of market forces or technological merit. AI dominance is shaped by access to capital, research funding, computing infrastructure, technology standards, and political influence. These factors determine who can innovate, whose innovations are recognized, and who is excluded from the technological future. As a result, the priorities of a handful of corporations and powerful states increasingly become the standards that shape the world.

Today, much of the global conversation on AI is framed as a strategic competition between the United States and China but the  real question is not which superpower develops the most advanced model. But, the more important question is whether the capacity to create, control, and govern transformative technologies will remain concentrated in a few centres of power ? or become accessible to societies across the world?

For AI to become a tool of human progress, its benefits, opportunities, and governance must be distributed more broadly. Otherwise, it risks becoming the foundation of a new form of digital domination—one that does not merely reflect existing inequalities, but institutionalizes them for generations to come. The future of AI is therefore not only a technological question but also a question of democracy, sovereignty, and equality.

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