Synopsis: India’s push toward a 9 GW data centre capacity by 2032 is being accelerated by three mega AI-focused investments from global tech giants and domestic leaders. This article explains in detail major AI data centre investment with global tech giants, the data centre capacity, and the number of data centres in major states.
India is witnessing a historic influx of investments in the AI-enabled data centre infrastructure, with more than $100 billion committed by 2027 as the global tech companies along with local firms battle it out to set up computing power in the world’s fastest-growing digital economy. The sudden rise in investments is not only an indicator of India’s strategic role as a global AI hub but also of the tremendous rise in the demand for cloud and AI services.
Why Large scale/ FII are Investing Data Centres In India
Because India’s internet consumption has increased enormously from Jio’s entry. This has led to a massive gap between supply and demand. The majority of Indian data is still being stored in foreign countries which highlight the domestic infrastructure requirement. Besides, India is still the most cost-effective country for electricity, land and constructions in the region. So, digital growth and good policies have made India one of the most attractive locations for data centre investments.
Major Investments in AI Data Centers by Tech Giants
1. Google’s Visakhapatnam AI hub
It is the largest-ever investment in India- approximately $15 billion (USD) over five years from 2026 to 2030 to establish its first dedicated AI hub in Visakhapatnam, AP. This Gigawatt-scale data centre campus will integrate large scale compute capacity, renewable energy infrastructure, and expanded fiber-optic networks. Partnered with: AdaniConneX and telecom major Airtel. This investment leverages Google’s existing R&D centres in Bengaluru, Hyderabad and Pune to accelerate AI-driven transformation across Indian Sectors.
2. Microsoft
Microsoft has invested in 2-phase India, with a total of $21.5 billion. First, they announced a $3 billion investment to expand AI and cloud capacity across Mumbai, Pune, Chennai, and the New Hyderabad region, launching in June 2026. The company is establishing hyperscale campuses with plans to train 10 million Indians in AI skills by 2030. Secondly, on December 9, CEO Satya Nadella announced in a post on X that Microsoft will invest $17.5 billion in India for AI development (GPUs and data centres) over the next 4 years. Exact MW not disclosed, but positioned as a flagship AI data centre campus.
3. AWS’s $8.3 Billion Maharashtra Cloud Infrastructure
AWS declared an investment of $8.3 billion for the cloud infrastructure expansion in the Asia-Pacific (Mumbai) region of AWS by 2030 and an additional $2 billion reserved for the Telangana state. Thus, the total AWS India commitment would be $12.7 billion by 2030. This investment is to support the hyperscale and enterprise cloud adoption which is being driven by the AI demand.
Also read: How India’s 500 GW Renewable Energy Target Will Transform Future of Data Centers by 2030
Major Domestic Industry Leaders
Reliance Industries Data Center Project
1. Jamnagar, Gujarat: They are targeting 3 gigawatts potentially costing between $20 billion to $30 billion. The first phase alone will deliver 1 GW, surpassing any existing data centre globally. This facility features an integrated green energy complex combining solar, wind, green hydrogen and the world’s largest petcoke gasifier facility for consistent power supply. Sourcing: NVIDIA Blackwell AI processors for this mega project.
2. Visakhapatnam Campus: Planned to facility 1GW of electricity at full capacity, which is half of Mumbai’s annual electricity consumption. Joint Venture: Digital connexion with Canada’s Brookfield Infrastructure and US-based Digital Realty. Reliance is investing $11 billion to build across 400 acres by 2030. This facility will feature the purpose to build AI infrastructure with redundant power feeds, carrier neutral connectivity, and renewable energy backing. Together, Reliance’s two projects total 4GW more than 4 times India’s entire current data centre capacity.
3. TCS HyperVault Through TPG Collaboration: Tata Consultancy Services came out of its usual asset-light model when it introduced HyperVault, raising a whopping $1 billion from private equity investor TPG in November 2025. The total funding intends to target ₹18,000 crore ($2.2 billion) for constructing over 1 gigawatt (GW) of AI infrastructure with the scale of a cloud region across multiple clouds. This marks the largest enterprise investment in owned data centre assets in India.
Sify Technologies’ Multi-Market AI Expansion
- Visakhapatnam Hyperscale: ₹16,466 crore ($2 billion) for a 550 MW AI-ready facility developed in collaboration with Meta, which is committing ₹15,266 crore ($1.8 billion) for its 500 MW hyperscale AI data centre at Paradesipalem near Visakhapatnam.
- Secondary Market Expansion: $5 billion of extra investment to construct 20 smaller AI inference facilities in secondary cities such as Tier-2 and Tier-3 markets, thereby making AI infrastructure access beyond metros more equitable.
- Sify’s data centres located in Chennai, Mumbai and Noida have been awarded the NVIDIA DGX-Ready Data centre certification for liquid cooling.
Conclusion
The influx of investments showcases India’s merits: cheap energy, massive renewable energy potential, huge developers’ communities, and a strategically located geographical position. India’s data centre market has attracted approximately $94 billion of investment since 2019, and the figure is expected to go beyond $100 billion by 2027.
Written by Yatheendra N
