India is increasing its ambitions to become an AI hub and plans to invest $200 billion in data centers

India Targets $200 Billion in Data Center Investments to Power AI Ambitions

India is seeking to attract up to $200 billion in investments in data centers over the next several years as it accelerates efforts to position itself as a global hub for artificial intelligence, according to the country’s electronics and information technology minister, Ashwini Vaishnaw.

The planned investments highlight India’s growing role as a critical technology and talent base in the global race to develop and deploy AI systems. Government officials say the influx of capital would support high-value digital infrastructure and help speed up the country’s broader digital transformation goals.

Speaking during a major AI Impact Summit hosted this week in India, Vaishnaw said the country is positioning itself as a trusted artificial intelligence partner for developing nations seeking affordable and open AI solutions.

“India is being seen as a trusted AI partner to Global South nations seeking open, affordable and development-focused solutions,” the minister said, emphasizing that AI should deliver measurable benefits at scale rather than remain limited to elite use cases.

Major global technology companies have already announced large investment commitments tied to AI and cloud infrastructure expansion in India. In October, Google unveiled a $15 billion investment plan over five years to establish its first AI hub in the country. Shortly afterward, Microsoft announced a $17.5 billion investment — its largest ever in Asia — aimed at strengthening India’s cloud and AI infrastructure over four years.

Meanwhile, Amazon has committed $35 billion in investments in India by 2030, with a strong focus on AI-driven digitization and platform expansion. Together, these and other proposals form part of the $200 billion investment pipeline New Delhi hopes to convert into active projects.

To attract global capital, the government has introduced a long-term tax holiday for data centers to provide policy certainty and improve project viability. Officials say infrastructure readiness is central to the national AI strategy.

Vaishnaw noted that the government has already operationalized a shared national computing facility with more than 38,000 GPUs, enabling startups, researchers and public institutions to access high-performance computing resources without heavy upfront investment. The goal, he said, is to ensure AI development remains broadly accessible.

Alongside infrastructure, India is also supporting the development of sovereign foundational AI models trained on Indian languages and local contexts. According to the minister, several of these models already meet global benchmarks and rival established large language models in selected tasks.

The government is also seeking a stronger voice in global AI governance. Rather than acting only as a rule maker or rule taker, India aims to be an active participant in shaping practical and workable international AI norms while expanding its global AI services footprint.

“India will become a major provider of AI services in the near future,” Vaishnaw said, describing a strategy that is both self-reliant and globally integrated across applications, models, chips, infrastructure and energy.

Workforce readiness remains another pillar of the strategy. The government is expanding AI education across universities, national skilling programs and online platforms to prepare workers for AI-driven changes in the job market. Widespread 5G connectivity and a young, tech-savvy population are expected to accelerate adoption across sectors.

At the same time, officials acknowledge the risks tied to rapid AI deployment in sensitive areas such as governance, health care and finance. The government’s framework focuses on implementable global standards, trusted infrastructure, controls on harmful misinformation and stronger human and technical capacity to manage AI’s impact.

“The future of AI should be inclusive, distributed and development-focused,” Vaishnaw said.