Global Tech Giants Drive Massive AI Infrastructure Investment in India
Leading technology companies like Google, Microsoft, OpenAI, and Meta are investing billions in India to build AI infrastructure, including data centers and energy resources. Google’s $15 billion AI hub in Visakhapatnam and Microsoft's $3 billion expansion highlight this surge. Data center investments in India are expected to surpass $100 billion by 2027, creating vast opportunities for local firms and boosting sectors like power and equipment manufacturing.
India is rapidly emerging as a critical global AI infrastructure hub, attracting massive investments from global technology leaders. Google's landmark $15 billion investment will establish its largest AI campus outside the United States in Visakhapatnam, featuring data centers, subsea cables, and renewable energy infrastructure. Microsoft plans to spend $3 billion expanding its cloud and AI operations in India, while OpenAI and Meta are also investing heavily. Collectively, these efforts have pushed AI and cloud commitments in India beyond $20 billion in 2025 alone, with projections that data center investments will exceed $100 billion by 2027. This growth supports India’s transition from a software outsourcing hub to a global AI construction base, stimulating related industries such as power generation, cooling solutions, and equipment manufacturing. Companies like AdaniConneX and Reliance Industries are key partners in building out this infrastructure, expected to account for 35-40% of India’s data center capacity by 2030. The government complements these private investments with policy initiatives aimed at building a strong AI ecosystem, including Centers of Excellence and startup financing programs. Despite currently holding only 3% of global data center capacity while hosting 20% of global data, India is addressing this gap to meet rising AI demands and to secure long-term leadership in AI technology and innovation.
