Navarro Targets AI Use in India Over U.S. Energy Burden

Peter Navarro, a former White House trade adviser under Donald Trump, has reignited debate around global technology usage and energy economics by questioning why artificial intelligence platforms operating from the United States are serving users in countries such as India.

His remarks, which referenced ChatGPT as an example, add a new technology dimension to ongoing trade and policy frictions between Washington and New Delhi.

Speaking in a recent media interaction, Navarro argued that large AI models hosted in the U.S. consume significant amounts of domestic electricity while providing services globally. He suggested that this dynamic effectively shifts infrastructure and energy costs onto American consumers, while the benefits are accessed by users and enterprises overseas.

“ChatGPT operates on U.S. soil, uses American electricity, and serves large users in India, China, and elsewhere,” Navarro said, questioning whether U.S. households should bear the indirect cost of powering AI services used internationally.

Navarro also said there could be potential policy move by the Trump administration, citing rising power costs directly linked to the rapid expansion of AI data centres.

AI Infrastructure And Energy Concerns

Peter Navarro’s comments come at a time when AI data centres are rapidly expanding across the U.S., driven by the growth of generative AI models and enterprise adoption. These facilities require substantial computing power and uninterrupted electricity, prompting renewed scrutiny of energy pricing, grid capacity, and public subsidies.

According to Navarro, the rising power demand from AI infrastructure could eventually push up electricity prices for American consumers. He indicated that policymakers should examine whether current arrangements disproportionately burden domestic users while supporting global digital consumption.

While he did not outline specific policy proposals, Navarro’s remarks suggested that AI infrastructure, energy usage, and cross-border digital services could become subjects of future regulatory or trade discussions.

India In The Global AI Ecosystem

India has emerged as one of the world’s largest user bases for AI platforms, including ChatGPT, driven by a growing developer community, startup ecosystem, and enterprise adoption. Indian companies increasingly rely on cloud-based AI services hosted overseas for software development, customer support, research, and automation.

However, experts note that AI platforms operate within a globalised digital economy, where infrastructure location, user geography, and revenue models are not confined by national borders. Cloud services, streaming platforms, and software-as-a-service products have long followed similar models, with servers located in a handful of regions serving users worldwide.

Indian officials have previously pushed back against criticism suggesting unfair advantage, arguing that digital services function through global value chains and market-driven demand rather than state-subsidised consumption.

Broader Trade and Political Context

Navarro’s remarks also reflect broader tensions that characterised U.S.-India trade discussions during the Trump administration, when disagreements arose over tariffs, market access, and energy policy. He has been a vocal critic of India’s trade practices in the past, often using sharp language that prompted diplomatic responses from New Delhi.

More recently, technology and energy have emerged as new fault lines in global economic debates, particularly as AI becomes central to productivity, national competitiveness, and strategic infrastructure.

Analysts say Navarro’s comments highlight a growing concern among some U.S. policymakers that emerging technologies could strain domestic resources unless new pricing, taxation, or localisation frameworks are introduced.

Industry Response And Reality Check

Technology industry leaders, however, caution against framing AI usage in strictly national terms. They point out that US-based AI companies generate revenue from international users, reinvest in domestic infrastructure, and support high-value employment in engineering, data science, and hardware manufacturing.

Moreover, many countries, including India, are actively investing in domestic AI infrastructure, data centres, and sovereign cloud platforms to reduce reliance on overseas systems over time.

Navarro’s comments on ChatGPT and India underscore how artificial intelligence is becoming entangled with trade, energy, and geopolitical debates. While his remarks raise ciquestions about infrastructure costs and energy consumption, they also reflect the complexities of a deeply interconnected digital economy.

As AI adoption accelerates globally, policymakers will increasingly be forced to balance national resource concerns with the realities of cross-border technology use. Whether this leads to new regulations or remains a rhetorical flashpoint will depend on how governments and industry respond to the growing scale and impact of AI infrastructure worldwide.