Technology

India currently has over 150 data centres with about 1.5 GW operational capacity as of early 2026, including emerging AI-focussed facilities driven by GPU deployments. The capacity to surpass 1.8 GW by the end of 2026 and reach over 8 GW by 2030 is fuelled by a shift toward AI-ready infrastructure encompassing hyperscale, specialised hardware like GPUs, software platforms, and edge computing.

Standard data centres currently yield Ebitda margins of 20-30%, while AI-optimised centres, with premium pricing for high-performance compute, are expected to achieve margins in excess of 50% due to elevated demand and utilisation.

Industrial manufacturing organisations are increasingly wanting to leverage technology as a force multiplier aligned with business strategy to unlock significant value. In India, government incentives on digital infrastructure, coupled with rising adoption of AI, are creating a strong foundation for transformation.

Organisations that invest in robust data foundations, scalable platforms, and workforce upskilling, while strengthening cybersecurity and ecosystem partnerships, will be best positioned to drive sustainable growth and resilience in a rapidly evolving global landscape.

AI has moved to the core of enterprise strategy, driving transformation beyond efficiency. With India’s Digital Public Infrastructure scaling and AI talent expanding rapidly, the focus now is execution.
Being AI first is not about experimentation. It is about aligning AI with core business priorities and embedding it across the value chain. As Agentic AI reshapes roles and workflows, enterprises must act with intent.

Three priorities stand out:

• Scale from pilots to enterprise wide deployment
• Treat trust as a strategic differentiator
• Build a truly AI native workforce and culture

The shift is clear. The question is no longer whether to adopt AI, but how fast and how well it can be scaled for impact.

India’s opportunity for globally experienced talent extends far beyond GCCs, spanning SaaS, semiconductors, fintech, logistics tech, auto tech, manufacturing and new energy. Demand is strong at the top and entry levels, with tighter mid tier depth. Compensation gaps with the US are narrowing, but ownership, innovation and India first global impact are the real draws.

Returnee talent is accelerating product thinking, global go-to-market and frontier AI. GCCs can anchor high skill roles when mandates include true product ownership. To scale this momentum, India will benefit from ESOP clarity, founder fast tracks, relocation support and sustained R&D funding.

India's data centre industry is moving into a new phase of accerlerated growth driven by AI-led workloads, cloud adoption, and evolving data localisation requirements. As infrastructure demand increases, the market will require integrated execution models that can combine engineering capabilities, AI readiness, regulatory understanding, and operational accountability to support large-scale and future-ready digital infrastructure development.

The India data centre story is, at its core, a story of the country's pivot towards a digital economy. This shift is being driven not only by India’s role as a global exporter of technology services, but also by the rapid expansion of a domestic consumer base that is increasingly consuming digital and technology-led services.

The India Union Budget 2026’s tax holiday for foreign cloud providers using domestic data centres, extended till 2047, strengthens investor confidence by highlighting India’s cost and efficiency edge in data centre operations. It is expected to encourage existing facilities to scale international services, while prompting new and marginal players to adopt hybrid operating models that balance offshore capacity with increased deployment within India to optimise returns.