India is poised to become a significant player in the global AI landscape with substantial investments from tech giants Microsoft and Amazon. Microsoft has pledged $3.7 billion to build data centers in Telangana, offering 660 megawatts of IT capacity, while Amazon plans to invest $12.7 billion in cloud infrastructure by 2030, according to the Financial Times.
These investments align with India’s goal to emerge as a leading AI hub. The government has introduced incentives for tech companies to establish operations, leveraging the country’s growing tech market and skilled workforce. Last year, the Ministry of Electronics and Information Technology (MeitY) launched the IndiaAI initiative to strengthen computing infrastructure, improve data management, and foster innovation and skilling.
Public-private partnerships and a focus on socially impactful AI projects are key to solidifying India’s position as a global AI powerhouse. This year, Microsoft, Amazon, and Google have committed a combined $85 billion to data center infrastructure worldwide, including significant investments in India. Lenovo India predicts that AI will power 20% of the personal computer market by FY25 due to high demand for AI-enabled devices.
According to Structure Research, these investments could propel India to the top spot for self-built data center capacity in the Asia-Pacific region. Microsoft’s data centers are crucial for developing sovereign AI capabilities in India, ensuring data security. The demand for local data centers is driven by the need to store and process sensitive information domestically.
Despite rapid growth, the environmental impact of data centers remains a challenge. India’s power generation is largely coal-dependent, but Microsoft is committed to sourcing clean power from renewable energy companies to become carbon-negative by 2030.
Source: Business Standard
