US Allegedly Utilizing Electricity to Deliver AI Services to India, Claims Trade Advisor Navarro

White House trade adviser Peter Navarro has triggered a new political storm after questioning why American resources are being used to support artificial intelligence services accessed overseas, particularly in India.

Speaking in an interview with former White House chief strategist Steve Bannon on Real America Voice, Navarro raised concerns about the growing global footprint of AI platforms such as ChatGPT and the costs borne by US consumers.

Navarro argued that AI infrastructure operating on American soil is effectively subsidising users abroad. “Why are Americans paying for AI in India?” he asked, claiming that ChatGPT runs on US-based data centres powered by American electricity while servicing large numbers of users in India, China, and other countries. Describing the issue as one that needs to “be dealt with,” Navarro warned about the rapidly increasing energy demands of artificial intelligence.

“It’s amazing, in a bad way, how much electricity is projected for the AI folks to use,” he said, adding that a significant share of this power consumption is linked to overseas usage. His remarks quickly went viral, drawing sharp reactions online and reigniting debates over digital infrastructure, energy use, and global access to US-developed technology.

The comments come at a sensitive moment in India–US relations. Tensions have risen following the Trump administration’s decision to impose steep tariffs on Indian goods, citing stalled trade negotiations and New Delhi’s continued purchases of Russian oil. Navarro, a long-time critic of India’s trade policies, has repeatedly accused the country of unfair tariff barriers and of indirectly supporting Russia’s war in Ukraine.

Navarro has previously alleged that India’s imports of discounted Russian crude amount to financing Moscow’s war effort. He controversially branded India a “laundromat” for the Kremlin, described Russian oil imports as “blood money,” and even referred to the Ukraine conflict as “Modi’s war.” His use of a “Brahmin” analogy while referring to India’s leadership also drew strong criticism.

Ministry of External Affairs has firmly rejected Navarro’s statements, calling them “unacceptable” and “ill-informed.” The ministry stressed that such rhetoric undermines mutual respect and fails to reflect the strategic depth of the India–US partnership, particularly in technology, defence, and global security.