India is rapidly positioning itself as a strategic global partner for long-term digital infrastructure, according to a recent report by Centrum. As 70% of compute-intensive models originate in the United States, and China intensifies its technological isolation, Western markets are increasingly seeking regulatory stability—creating a unique opportunity for India to step in.
The report reveals that India’s data centre capacity reached 1.4 GW in 2024, translating to a market size of USD 5.03 billion. This is expected to grow at a compound annual rate of 21% through 2030—nearly double the global average of 11.2%.
Currently, India has 3.4 GW of data centres under construction, backed by over USD 50 billion in hyperscaler commitments. However, demand is projected to surge to between 6.5 GW and 8.3 GW by 2028, while supply is estimated to reach only 4.8 GW—creating a significant demand-supply gap. This imbalance is likely to generate premium pricing power for early investors, especially as AI workloads are forecasted to drive a 165% increase in data centre power demand by 2030.
Major industry players are already validating India’s potential. Amazon Web Services (AWS) has committed USD 12.7 billion, Google is building a USD 6 billion facility in Visakhapatnam, Microsoft is expanding with a USD 3 billion plan, and Reliance, in partnership with NVIDIA, is developing a USD 25 billion AI infrastructure project in Jamnagar.
India’s robust digital economy further supports this growth. The country processes 164 billion annual UPI transactions, boasts over 547 million OTT users, and records nearly 17.4 exabytes of monthly data consumption—underscoring its massive digital engagement.
Centrum’s report emphasizes that India is now at the epicenter of a historic opportunity to capture disproportionate value from the global AI infrastructure revolution. Unlike previous tech cycles that offered optional upgrades, AI represents an existential necessity. The evolution from GPT-1’s 117 million parameters to today’s frontier models requiring over 30 trillion tokens has drastically transformed infrastructure needs—from traditional 4-8kW per rack to AI training demands of 30-120kW per rack.
This shift has led to the emergence of specialized market segments such as high-density “AI factories” for training and distributed inference centres—solidifying India’s role in the future of global digital infrastructure. SME Futures