India Eyes Investments Worth $200 Billion in Data Centres: Ashwini Vaishnaw at AI Summit

Why It Matters

The funding drive could reshape global AI infrastructure, giving India a decisive edge in data processing and talent. It also positions the nation as a key player in AI policy and supply‑chain dynamics.

Key Takeaways

• India targets $200B data centre investments.
• Goal: become world‑class AI data hub.
• Policy incentives include tax breaks, regulatory support.
• Google announced $15B AI hub in India.
• Focus spans all five AI stack layers.

Pulse Analysis

India’s ambition to marshal $200 billion for data‑centre construction reflects a broader shift in global AI infrastructure demand. As generative models and large‑scale training workloads consume petabytes of storage and compute, the country’s 1.4 billion‑strong user base offers an attractive volume of data and a low‑cost talent pool. International cloud providers have already earmarked billions for Indian sites, and the government’s declaration positions the nation as a strategic alternative to traditional hubs in the United States, Europe, and East Asia. This scale also promises significant cost efficiencies for AI developers.

The Union Budget’s tax holidays, accelerated approvals, and relaxed land‑use norms aim to shave months off project timelines and lower capital expenditures. Energy security, however, remains a critical bottleneck; data centres consume up to 100 MW per large facility, prompting the government to pair investments with renewable‑energy mandates. Skill development programs are being expanded to produce more data‑engineers and facilities managers, addressing the talent gap that has historically slowed deployment. Together, these policy levers create a more predictable environment for both domestic players and foreign investors. Public‑private partnerships are being explored to fund green‑energy grids.

Attracting $200 billion will likely catalyze a cascade of downstream services, from edge‑computing startups to AI‑driven fintech and health‑tech firms that rely on low‑latency data access. The influx also strengthens India’s bargaining power in international AI governance debates, as a major data‑hosting nation can influence standards on privacy, localization, and algorithmic transparency. While competition from Singapore, Japan, and the Middle East persists, India’s scale advantage and multilingual data sets give it a unique edge that could reshape the global AI supply chain over the next decade. Investors are closely watching the rollout timeline for early entry.

India eyes investments worth $200 billion in data centres: Ashwini Vaishnaw at AI Summit

Published on Feb 17 2026 at 04:41 PM IST · The government’s goal is to develop India into a world‑class data hub that attracts investment across all five layers of the AI technology stack.

NEW DELHI – India is targeting up to $200 billion in investments for data centres in the coming years as it ramps up efforts to position itself as a global artificial‑intelligence hub, said Electronics and IT Minister Ashwini Vaishnaw at the India AI Impact Summit on Tuesday.

Addressing the media on the sidelines of the summit, Vaishnaw said the government’s goal is to develop India into a world‑class data hub that attracts investment across all five layers of the AI technology stack — spanning infrastructure, computing, storage, applications and energy requirements.

“We are aiming to make India the data hub of the world, and we are hoping that in the next two years, we will be able to attract investments that would span all five layers of the AI stack,” Vaishnaw said at the briefing.

The projected inflows highlight how global technology giants increasingly view India as a strategic base for infrastructure, talent and market expansion in the intensifying global AI race.

The announcement builds on earlier pitches by Prime Minister Narendra Modi, who, ahead of the summit, said India is ready to host global data workloads and become a leading player in digital infrastructure and AI development.

In recent years, several tech giants have already signalled significant investment plans in India’s digital and AI ecosystem. In October, Google unveiled a $15 billion AI hub project and data‑centre campus, while other global firms have also committed substantial funds to Indian AI, cloud and computing infrastructure.

The government’s strategy is reinforced by policy incentives introduced in the Union Budget, including tax breaks and regulatory support for data‑centre development, designed to lower costs and accelerate infrastructure build‑out.

India’s ambition to become a global AI hub also aligns with efforts to promote home‑grown foundational models and AI technologies that cater to local languages and use cases, as well as India’s broader push to shape international AI policy and governance.