May 9, 2025 – India is on the brink of a major transformation in artificial intelligence (AI) infrastructure, according to a new report titled “Attracting AI Data Centre Infrastructure Investment in India.” The study outlines a strategic roadmap to position the country as a global hub for AI-ready data centres amid surging domestic and international demand.
India’s AI market is projected to grow to US$22 billion by 2027, yet the country accounts for only 3% of global data centre capacity, despite generating 20% of the world’s data. This disparity presents a compelling opportunity for India to scale up its AI infrastructure.
“To accelerate AI capabilities and realise its potential, India must introduce enabling policies and invest in infrastructure, talent, vernacular datasets and R&D,” said S. Anjani Kumar, Partner, Deloitte India. “Stronger public–private partnerships can position India as a global AI ecosystem leader.”
The report identifies six critical enablers: real estate, power, connectivity, compute infrastructure, talent, and policy reforms. Key recommendations include setting up Data Centre Economic Zones (DCEZs), ensuring stable and renewable energy supply, expanding GPU capacity, and simplifying regulatory frameworks.
“India’s strategic location positions it as a critical node in the global data centre ecosystem,” added Neha Aggarwal, Partner, Deloitte India. “But becoming an AI hub demands high-performance compute infrastructure, scalable power and cooling systems, and a refreshed policy framework.”
Report Highlights:
- Data Centre Growth: Capacity is expected to grow from 1,300 MW in 2024 to 2,200 MW by 2026, with potential to reach 12,000 MW by 2030.
- Investments: Over US$60 billion has flowed into India’s data centre sector since 2019, with US$19 billion in 2024 alone.
- Private Sector Momentum: Major players including Jio, Tata Communications, Microsoft, Google, AdaniConneX, and Nvidia are investing heavily in AI infrastructure.
- Government Backing: The IndiaAI Mission is allocating ₹10,300 crore towards GPUs, AI R&D, and infrastructure development.
With the global AI market projected to near US$1 trillion by 2027, the report urges India to act now to convert its data advantage into digital leadership.
