India - The new frontier for AI GPU clusters

The Indian data centre industry is undergoing a period of unprecedented expansion, characterized by substantial advancements in infrastructure and significant investment inflows. Major hyperscale cloud players are actively pursuing land acquisitions in strategic data center locations. At the same time, data centre operators are laying the groundwork for new campuses, targeting 400 kVA lines to support the development of AI clusters. Navi Mumbai has emerged as a hotspot for accelerated pre-leasing activities, with potential demand reaching an impressive 800 MW.

Artificial intelligence is poised to make a monumental impact on India's economy, with projections indicating a contribution of US $957 billion. This marks a pivotal moment in the nation's technological evolution. The government has demonstrated its commitment to this sector by approving US $1.24 billion for AI infrastructure investments, which includes the deployment of at least 10,000 GPUs. The AI boom is bolstered by collaborations between global technology giants and Indian IT firms, with Nvidia partnering with technology companies to train approximately 500,000 developers in AI agent creation and implementation.

The rollout of 5G technology has dramatically reshaped India's digital landscape, achieving over 90% population coverage by the close of 2023. 5G users are consuming data at 3.6 times the rate of their 4G counterparts, with 5G's overall contribution rising to 15% in 2023. By the end of that year, India has surpassed 119 million 5G subscriptions, a figure expected to soar to 840 million by 2029, underscoring the rapid embrace of this technology across the nation.

Looking ahead, the data centre industry is projected to add 604 MW of capacity during the period from H2 2024 to 2026. This expansion will necessitate 7.3 million sq. ft. of real estate and a capital investment of US $3.8 billion. While Mumbai is expected to maintain its market leadership, Chennai and other regions are also experiencing notable growth. This industry-wide expansion is driving up demand for specialized data centre skills and creating opportunities in related sectors.

India's data centre industry stands on the cusp of substantial growth, propelled by AI adoption, 5G expansion, and accelerating digital transformation. The sector's rapid progression is attracting considerable investments, generating employment opportunities, and contributing significantly to the country's economic advancement. India is swiftly establishing itself as a global hub for AI innovation and development, paving the way for a more technologically sophisticated and economically resilient future.