India’s AI dreams turning into data centre reality

India’s artificial intelligence (AI) ambitions are taking the shape of a digital warehouse boom. While semiconductor chips, models, and computing platforms capture most of the value globally, domestic capital is chasing the lower-risk, lower-value layer of data centres.

- Abhinaba Saha

India expects roughly 1.5GW of data centre capacity, but existing infrastructure is about 0.8GW. BLOOMBERG

But experts doubt that this boom can solve India’s deeper challenge of building high-value technology capabilities and creating enough quality jobs to compete with global peers.

There are 208 data centre projects in the pipeline, with planned investments of ₹12.3 lakh crore, according to data from the economic think tank Centre for Monitoring Indian Economy (CMIE).

More than 60% of this investment, or about ₹7.6 lakh crore, was announced in FY26 alone, marking a fivefold jump in AI-linked infrastructure spending commitment between FY25 and FY26.