India is positioning itself as a global artificial intelligence powerhouse — and it’s backing that ambition with a massive infrastructure push. The government is targeting up to $200 billion in data centre investments over the next few years. This will power its AI growth story.
Electronics and IT Minister Ashwini Vaishnaw said the planned investments reflect India’s growing role as a trusted technology and talent hub in the global AI race. Meanwhile, as New Delhi hosts a major AI Impact Summit this week with participation from over 20 global leaders and top tech executives, the country is pitching itself as a development-focused AI partner. In particular, it is doing so for Global South nations.
Global tech giants are already committing large sums. Google has announced a $15 billion investment plan over five years to set up its first AI hub in India. Microsoft followed with a $17.5 billion commitment to expand cloud and AI infrastructure. Amazon has pledged $35 billion by 2030, largely aimed at AI-led expansion. Together, these and other proposed investments form part of the $200 billion pipeline the government hopes to attract.
A key pillar of the strategy is building a strong computing infrastructure. The government has rolled out a shared computing facility with over 38,000 GPUs. As a result, startups, researchers and institutions can access advanced computing without high upfront costs. It has also announced a long-term tax holiday for data centres to boost investor confidence and policy certainty.
India is simultaneously backing the development of sovereign AI models trained on Indian languages and local data. Some of these models, according to the minister, meet global benchmarks. In certain tasks, they rival widely used large language models.
Beyond infrastructure, the focus is also on skills and regulation. The government is expanding AI education, reskilling programmes and public-private partnerships under its AI Mission initiative. With widespread 5G rollout and a young, tech-savvy population, India expects faster AI adoption across sectors.
At the same time, policymakers are working on global frameworks, safeguards against misinformation, and capacity-building. This is to ensure AI growth remains inclusive, distributed, and development-focused.
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