India is rapidly positioning itself as a leading global hub for AI infrastructure, riding the wave of hyperscaler investments and increasing demand for compute power. According to a recent report by Centrum, India’s digital infrastructure capacity reached 1.4 GW in 2024, translating to a market size of $5.03 billion. This capacity is expected to grow at a 21% CAGR through 2030—nearly double the global average of 11.2%.
AI Boom Drives Massive Infrastructure Surge
India currently has 3.4 GW of data centres under construction, backed by over $50 billion in committed investments from tech giants like Amazon Web Services (AWS), Google, Microsoft, and Reliance in partnership with NVIDIA. Despite this, projected demand could hit 8.3 GW by 2028, creating a critical demand-supply gap and positioning early investors for significant pricing advantages.
As AI workloads grow exponentially, power demands are expected to surge by 165% by 2030, driven by training requirements of frontier models that have scaled from GPT-1’s 117 million parameters to 30+ trillion token models.
Global Dynamics Create a Unique Opportunity
India’s emergence comes at a time when the U.S. dominates AI model creation (70%) and China faces increasing technological isolation. Western companies are seeking politically and regulatorily stable environments to host AI infrastructure—offering India a once-in-a-generation opportunity to lead.
The country’s robust digital ecosystem, with 164 billion UPI transactions, over 547 million OTT users, and 17.4 exabytes of monthly data consumption, strengthens its value proposition further.
India’s Shift to AI-Dedicated Infrastructure
The evolution from traditional data centres to high-density AI factories is reshaping the landscape. New infrastructure demands 30–120kW per rack—up from the conventional 4–8kW.
With hyperscaler-backed projects, government support, and massive digital adoption, India is set to capture disproportionate value from the global AI revolution, becoming not just a consumer but a critical supplier of next-gen digital infrastructure.