India accounts for 3% of global datacentre capacity
Recognizing the critical role of AI infrastructure in shaping India’s economic future, the NITI Aayog Frontier Tech Hub hosted a high-level workshop on May 8, 2025, focused on accelerating investments in AI-ready datacentres across Indian states.
The workshop brought together senior officials from key state governments, central ministries and industry leaders to chart a strategic roadmap for positioning India as a global hub for AI infrastructure https://www.meity.gov.in/.
The deliberations spotlighted the widening gap between India’s digital ambitions and its current compute capabilities.
Although India generates nearly 20% of the world’s data, it accounts for just 3% of global datacentre capacity. With AI adoption surging across sectors, the need for reliable, scalable, and sustainable AI infrastructure has never been more urgent https://sbi.com.in/.
The workshop urged states to move beyond land- and real estate-centric models and embrace a new paradigm anchored in access to clean energy, high-performance computing, and streamlined policy environments https://www.commerce.gov.in/.
Key themes included:
The projected doubling of global electricity demand from datacentres and AI by 2026
India’s unique advantages in renewable energy, deep engineering talent, and rapidly growing digital economy
The need for coordinated reforms in power, policy, and regulation to attract hyperscale and sovereign AI investments
Participants discussed the six critical pillars essential for AI datacentre readiness—land, power, network, compute, talent, and enabling policies. The conversation highlighted the urgency for states to think not just competitively within India, but globally, as countries like Vietnam, UAE, and Indonesia aggressively pursue AI investments.
Speaking at the workshop, NITI Aayog CEO B.V.R. Subrahmanyam said, “India has a once-in-a-generation opportunity to become a global AI datacentre hub. With our clean energy leadership, unmatched tech talent, and strong policy momentum, we are well-positioned to deliver the world’s greenest and most cost-effective AI compute. But the competition is global.
“States must stop thinking only in terms of land and start thinking in terms of AI ecosystems — anchored in energy, innovation, and execution.”
The workshop was organized in partnership with Deloitte, the Knowledge Partner, and featured participation from ten states and representatives from defense, ministries of MNRE, Finance, DoT and Power.
A strategic report titled “Accelerating AI Infrastructure Investments in India”, providing a comprehensive blueprint to unlock national-scale AI infrastructure investments was also launched in the workshop.
This workshop is part of the NITI Frontier Tech Hub’s ongoing efforts to drive frontier technology awareness, readiness, and policy innovation across states and ministries—strengthening India’s journey to becoming a global leader in the AI-powered intelligence economy. Fiinews.com
