Why global technology firms are betting billions on India's data centres
Global tech firms like Meta, Google, and AirTrunk are investing billions in India’s data centers, driven by AI demand, power availability, and government policies, with capacity surging from 375 MW in 2020 to over 1.6 GW in 2026. India now ranks second in Asia-Pacific operational data-center capacity, positioning itself as a key hub for AI infrastructure under initiatives like the IndiaAI Mission, which has onboarded over 38,000 GPUs.
India is emerging as a top destination for global tech firms building AI-ready data centers, with investments accelerating due to its strategic advantages. Meta announced plans to lease a 168 MW AI-ready facility in Jamnagar, Gujarat, built by Reliance Industries, while Google broke ground on a $15 billion AI hub in Visakhapatnam as part of its gigawatt-scale expansion. AirTrunk, backed by Blackstone, pledged Rs 3 lakh crore in investments by 2030, marking one of the largest digital infrastructure commitments in the country. While India had 296 data centers as of April 2026—ranking sixth globally—its true growth lies in capacity. The country’s installed data-center capacity jumped from 375 MW in 2020 to nearly 1.6 GW in 2026, surpassing regional peers and positioning it as the second-largest operational market in Asia-Pacific. This shift reflects a broader trend: AI demands far greater computational power than traditional cloud workloads, requiring specialized infrastructure like GPUs and advanced cooling systems. The Ministry of Electronics and Information Technology (MeitY) reports India’s data centers now support over 38,000 GPUs under the IndiaAI Mission, a government-led initiative to bolster AI infrastructure. This aligns with global trends where AI is driving an ‘infrastructure race,’ with companies prioritizing locations that can handle high-power, high-heat computing demands. India’s combination of abundant power, favorable policies, and strategic geography makes it an attractive alternative to established hubs like the U.S. or China. Experts note that while the number of data centers matters, capacity—measured in megawatts—determines real-world computing potential. India’s rapid expansion in this area signals its ambition to become a major player in the digital economy, particularly as AI workloads continue to grow. The influx of foreign investments underscores confidence in India’s ability to scale infrastructure for next-generation technology.
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