Is Delhi Ready to Buy “Cool Air” Instead of Air Conditioners? The Rise of a Phygital Heat Economy

Is Delhi Ready to Buy “Cool Air” Instead of Air Conditioners? The Rise of a Phygital Heat Economy

Convincing consumers to shift to a subscription model will require awareness, transparency, and reliable service. 

By Imrana
New Delhi | May 2, 2026

Delhi is heating up faster than we are preparing for it. According to multiple climate studies, India’s cooling demand could rise by nearly 40 percent by 2040, driven largely by cities like Delhi where extreme heat waves are becoming longer, harsher, and more frequent. In a place where stepping outside in May can feel like opening an oven door, cooling is no longer a luxury. It is becoming a survival need. But here is the real question. Can Delhi continue relying on millions of individual air conditioners without collapsing its own power systems and worsening climate change?

Right now, the answer seems uncomfortable. Traditional air conditioning follows a simple logic. You buy a machine, you use it, and you pay the electricity bill. This is what economists call a Capex model, where the consumer bears the upfront cost. But this model is quietly becoming outdated. It strains electricity grids, increases emissions, and creates inequality because not everyone can afford high quality cooling. In a city already battling pollution and energy shortages, this approach is like pouring water into a leaking bucket.

Now imagine a different system. Instead of buying AC units, people subscribe to cooling the way they subscribe to WiFi or streaming services. You do not own the machine. You simply pay for the cooling you use. This idea is called Cooling as a Service, or CaaS. It shifts the model from Capex to Opex, meaning users pay small, regular amounts instead of a large upfront cost. It sounds futuristic, but it is already being tested in parts of the world.

Phygital Heat Economy

This is where the idea of a “phygital” heat economy enters the conversation. The term combines physical infrastructure with digital intelligence. On the physical side, there are district cooling systems. These are large, centralised plants that produce chilled water and distribute it through underground pipes to multiple buildings. Instead of each building running its own AC, an entire neighbourhood shares one efficient cooling system. On the digital side, artificial intelligence monitors demand, predicts peak usage, and adjusts supply in real time to avoid energy waste.

Think of it like a smart cooling network. When demand rises during a heat wave, AI systems can redistribute energy efficiently so that no area experiences overload. When demand drops at night, the system scales down automatically. It is not just cooling. It is intelligent cooling.

The benefits of this model go beyond convenience. First, it reduces electricity consumption significantly. Centralised systems are far more efficient than thousands of individual units running at once. Second, it cuts down greenhouse gas emissions, which is critical for a city already struggling with air quality. Third, it makes cooling more accessible. Instead of paying tens of thousands for an AC unit, families can pay smaller monthly fees.

Cooling Infrastructure

However, the idea is not without challenges. Setting up district cooling infrastructure requires high initial investment and strong urban planning. Retrofitting older parts of Delhi could be complex, given the dense and often unplanned nature of the city. There is also the question of governance. Who owns these systems? Private companies, the government, or public-private partnerships? Without clear policies, the model could face delays or resistance.

This is where India’s policy framework becomes important. The India Cooling Action Plan already recognises the growing demand for sustainable cooling solutions. It encourages energy efficient technologies and alternative cooling methods. But policies alone are not enough. Implementation is the real test. For example, integrating cool roofs into building codes can make a big difference. These are roofs designed to reflect more sunlight and absorb less heat, reducing indoor temperatures naturally. Similarly, permeable paving allows water to seep through surfaces, cooling the surrounding environment and reducing the urban heat island effect.

If these local solutions are combined with large scale innovations like district cooling, Delhi could transform its approach to heat management. It is not about choosing one solution over another. It is about building a system where multiple strategies work together.

AI Optimisation

Another interesting angle is the role of data centres and commercial hubs. These spaces consume massive amounts of energy for cooling. With AI driven optimisation, cooling loads can be balanced between residential and commercial areas, ensuring that energy is used where it is needed most. In simple terms, the system learns and adapts. It becomes smarter over time.

Yet, there is a social dimension that cannot be ignored. Will people trust a system where they do not own the cooling device? Ownership often feels like control. Convincing consumers to shift to a subscription model will require awareness, transparency, and reliable service. After all, when temperatures cross 45 degrees Celsius, nobody wants to risk a cooling failure.

There is also a deeper question about equity. If designed well, CaaS could reduce the cooling gap between the rich and poor. But if pricing is not regulated, it could create new inequalities. Policymakers will need to ensure that affordability remains central to the model.

Delhi stands at a crossroads. On one side is the traditional path, where every household installs its own AC, leading to rising emissions and strained power grids. On the other side is a smarter, more sustainable future, where cooling is treated as a shared service powered by technology and innovation.

The road ahead is not simple. It requires investment, planning, and a shift in mindset. But as the saying goes, necessity is the mother of invention. With heat waves becoming the new normal, Delhi does not have the luxury of ignoring change.

So the real question is not whether Delhi can adopt a phygital cooling economy. It is whether it can afford not to.

This article has been written exclusively for RMN News by Imrana, who is a student specializing in multiple domains such as business, trade, education, technology, entertainment, and politics. 

She also produces Imrana’s Insight podcast program on diverse topics and Imrana’s Tech Talk podcast program on tech applications.

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