Having attracted unprecedented investment in hyperscale AI projects, India's operational data centre capacity is projected to surge to about 6.5GW by the end of the decade.
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The global energy landscape is being reshaped by the artificial intelligence (AI) revolution as countries race to build the data centres that will power the next generation of computing.
India has emerged as one of the leading contenders, with global technology giants including Google, Microsoft and Amazon, alongside major domestic conglomerates, committing billions of dollars to establish AI-ready data centre infrastructure.
Much of this investment is concentrated in coastal cities such as Mumbai and Chennai, whose proximity to undersea cable networks makes them ideal locations for hyperscale data centres.
These facilities require vast amounts of electricity and water to cool specialised, heat-intensive computing hardware.
They also depend on robust power grids, high-capacity fibre-optic connectivity and increasing access to renewable energy.
Among the growing hubs is Visakhapatnam (Vizag), the economic powerhouse of the southern coastal state of Andhra Pradesh.
Google has committed $15 billion (about R246 billion) to the region, while Reliance Industries is developing a $17 billion, 1.5-gigawatt (GW) AI data centre cluster.
The Adani Group has also announced plans to invest $100 billion in building a 5GW AI platform by 2035.
Meanwhile, inland technology centres such as Hyderabad and Pune are rapidly expanding their cloud computing and AI infrastructure, broadening India’s digital footprint beyond its coastline.
New Delhi’s ambition to position India as a global AI and cloud computing powerhouse is underpinned by an increasingly supportive policy framework.
Government support extends to concessional long-term financing for developers and generous tax incentives, including tax holidays until 2047 for companies investing in green AI infrastructure.
Having attracted unprecedented investment in hyperscale AI projects, India’s operational data centre capacity is projected to surge to about 6.5GW by the end of the decade.
According to Goldman Sachs Research, cited by Moneycontrol, global electricity demand from data centres is expected to increase by 165% by 2030. India appears well positioned to capitalise on this unprecedented growth.
However, as in the US – the current global leader in AI – rapid expansion has raised legitimate concerns over environmental sustainability.
In Visakhapatnam, local communities have protested against large-scale land acquisition, the displacement of farmers and growing pressure on water supplies.
Opposition has also emerged over projects such as the proposed Google-Adani development, with critics alleging rushed environmental approvals and questioning the long-term employment benefits.
Despite the challenges, India’s momentum in building the infrastructure required to power the AI age is unmistakable.
With massive investment, supportive government policy and a rapidly expanding digital ecosystem, the country is well on course to establish itself as one of the world’s leading AI powers-ranking behind only the US and China in global AI competitiveness.
