India bets $100 billion on data centers in bid for AI superpower status

India’s Data Center Investment Set to Top $100 Billion as AI Hub Competition Heats Up

SINGAPORE — India is aggressively expanding its data center capacity to become a premiere global destination for artificial intelligence infrastructure, with investments projected to exceed $100 billion by 2027.

According to data from CBRE Group, the surge continues despite mounting global concerns regarding the intense water and energy demands of these facilities.

International tech giants are leading the charge. OpenAI announced plans for a 1-gigawatt AI data center last September, while Amazon, Google, Microsoft, and Meta have all scheduled major AI-related investments for the final quarter of 2025.

Domestic conglomerates are also pivoting to the sector. Reliance, Adani, and the Tata Group have entered the race to build the centralized facilities that house the servers and digital infrastructure required for modern technology.

These data centers provide the backbone for a wide range of services, including cloud computing, e-commerce, and generative AI tools like ChatGPT.

NEW DELHI — India’s $100 billion ambition to dominate the global artificial intelligence landscape marks a pivotal escalation in the race to control the digital infrastructure of the future. This is no mere capital injection; it is a calculated strategic offensive designed to position the subcontinent as the indispensable backbone of the emerging AI economy.

India’s momentum is fueled by a potent convergence of factors: a vast internal market, aggressive state incentives, and a unique synergy between Silicon Valley titans and domestic industrial giants like Reliance Industries and the Adani Group. This alignment of global tech expertise and local "national champions" has birthed a capital-heavy ecosystem with a deployment capacity that few nations can currently replicate.

For Southeast Asian nations, particularly Vietnam, India’s rapid scaling presents an existential competitive challenge. While Vietnam offers geographic advantages and competitive labor costs, it remains hampered by a structural deficit: the absence of domestic conglomerates with the balance sheets required to anchor multi-billion-dollar infrastructure projects.

The battle for AI data sovereignty is increasingly dictated by three critical pillars: energy stability, massive capital reserves, and a streamlined regulatory environment. By demonstrating it can provide all three at scale, India is effectively raising the barrier to entry for its neighbors. For the rest of the region, the window to attract the next wave of high-tech investment is narrowing as India transforms from a service provider into a global AI powerhouse.