New Delhi, May 27: India’s artificial intelligence (AI) ecosystem is expected to significantly accelerate demand for data centre infrastructure, with the sector projected to attract nearly $23 billion in investment, according to a recent industry report.
The report highlights that the rapid adoption of AI technologies across industries is driving the need for high-capacity, energy-efficient, and scalable data centre facilities across the country.
Growing usage of AI-powered applications, cloud computing, and data-intensive services is increasing pressure on existing digital infrastructure, prompting strong expansion plans by both domestic and global players.
Key demand is emerging from sectors such as financial services, e-commerce, healthcare, and manufacturing, where AI and data analytics are being increasingly integrated into operations and decision-making systems.
The report notes that major data centre hubs including Mumbai, Chennai, Hyderabad, and Delhi-NCR continue to attract significant investments due to strong connectivity, reliable power infrastructure, and established digital ecosystems.
Industry experts said the convergence of AI adoption and digital infrastructure growth is positioning India as one of the fastest-growing data centre markets globally. However, they added that long-term expansion will depend on improvements in energy efficiency, regulatory frameworks, and talent availability.
Overall, the findings underline AI as a key driver of India’s digital infrastructure growth, with significant implications for investment, innovation, and economic expansion in the coming years.