India Moves to Fix AI Infrastructure Gap with National Datacentre Push
India generates nearly 20% of the world’s data, but accounts for just 3% of global datacentre capacity. To close this gap, NITI Aayog has launched a nationwide effort urging states to prioritise investments in AI-ready datacentre infrastructure. At a workshop held this week in Delhi, the think tank gathered senior officials from central ministries, state governments, and industry leaders to outline a unified strategy aimed at accelerating AI infrastructure deployment across the country.
Organised in collaboration with Deloitte, the event marked a clear shift from traditional development approaches. States were asked to go beyond land grants and incentives to instead build full-fledged ecosystems grounded in energy availability, high-end compute resources, digital talent, and supportive policy frameworks.
New Framework Targets Holistic Infrastructure Development
A new report, Accelerating AI Infrastructure Investments in India, was released during the workshop to provide states with a step-by-step roadmap. The framework identifies six essential pillars for AI infrastructure: land, power, network connectivity, compute capacity, skilled talent, and enabling policy. One key takeaway is the role of clean energy—datacentres could consume over 1,000 terawatt-hours of electricity globally by 2026, highlighting sustainability as a strategic differentiator for states vying for hyperscale investments.
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Industry participants stressed the urgency of synchronising efforts across sectors. Ministries including Power, Finance, Telecom, Defence, and Renewable Energy took part in discussions on streamlining permissions and creating plug-and-play datacentre zones. Delegates from over ten states explored ways to integrate AI infrastructure into broader economic development agendas.
A Race Against Time to Capture the AI Opportunity
NITI Aayog positioned this campaign as a pivotal moment in India's digital transformation. Officials committed to working closely with states through its Frontier Tech Hub to assist in policy design, investment promotion, and project implementation. The initiative aims not only to catch up with global AI leaders but to build a foundation for India to emerge as a preferred destination for AI compute on a global scale.
Participants agreed that missing this wave of AI infrastructure development could mean missing the next major phase of economic opportunity. For India, the message was clear: act fast—or risk falling behind.
