India Eyes 200 bn Data Centres Push To Become Global AI Hub

23 Feb 2026 CW Team

Planners highlighted that scaled data centre capacity is essential to support compute intensive AI research and commercial applications. The expansion will require coordinated upgrades to power grids, fibre connectivity and cooling facilities, and policymakers signalled a focus on sustainable energy sourcing. Private investment, sovereign and global funds are being positioned to back campus style facilities, while smaller edge centres are expected to proliferate across metropolitan and regional nodes. Regulators are working on clarity for cross border data flows to reassure multinational operators.

Participation in the Pax Silica alliance was described as part of a broader effort to deepen supply chain resilience and attract responsible technology partners. The declaration signed at the summit emphasised collaboration on trusted supply chains, research partnerships and standards alignment to support AI deployment. Observers noted that aligning trade and investment rules with like minded economies could reduce bottlenecks in semiconductors and specialised inputs required for large scale data centre build out. Skills development and research collaboration were cited as complementary priorities.

Analysts cautioned that realising the 200 bn target will depend on long term policy consistency, grid investment and land availability near urban centres. They forecast phased growth with initial concentration in established technology corridors before gradual decentralisation to secondary cities. The government and industry leaders committed to monitoring progress and adjusting incentives to ensure the sector contributes to job creation and national competitiveness in AI.

India is targeting 200 billion dollars (200 bn) in data centre investment as part of a push to become a global artificial intelligence hub. Officials framed the ambition at an international AI summit where India joined a US-led alliance on supply chains known as Pax Silica. The government presented the initiative as a means to attract long term capital, bolster domestic infrastructure and secure critical chip and silicon supplies. Industry executives said incentives, streamlined approvals and dedicated zones are expected to accelerate deployment. Planners highlighted that scaled data centre capacity is essential to support compute intensive AI research and commercial applications. The expansion will require coordinated upgrades to power grids, fibre connectivity and cooling facilities, and policymakers signalled a focus on sustainable energy sourcing. Private investment, sovereign and global funds are being positioned to back campus style facilities, while smaller edge centres are expected to proliferate across metropolitan and regional nodes. Regulators are working on clarity for cross border data flows to reassure multinational operators. Participation in the Pax Silica alliance was described as part of a broader effort to deepen supply chain resilience and attract responsible technology partners. The declaration signed at the summit emphasised collaboration on trusted supply chains, research partnerships and standards alignment to support AI deployment. Observers noted that aligning trade and investment rules with like minded economies could reduce bottlenecks in semiconductors and specialised inputs required for large scale data centre build out. Skills development and research collaboration were cited as complementary priorities. Analysts cautioned that realising the 200 bn target will depend on long term policy consistency, grid investment and land availability near urban centres. They forecast phased growth with initial concentration in established technology corridors before gradual decentralisation to secondary cities. The government and industry leaders committed to monitoring progress and adjusting incentives to ensure the sector contributes to job creation and national competitiveness in AI.

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