To contextualize the estimated $20-25 billion investment requirement for the datacentres, it is important to note that this figure likely understates the full capital outlay. The estimate captures investment from only three of the five compute-power investor archetypes—builders, energizers, and technology developers/designers—who directly fund the underlying infrastructure and foundational technologies enabling datacentres at scale. Roughly 15% (~$3.3 billion) of the investment is expected to flow to builders for land acquisition, materials, and site development. Another 25% (~$5.6 billion) will be directed toward energizers for power generation, transmission, cooling, and electrical systems. The largest share—60% (~$13.5 billion)—will go to technology developers and designers responsible for advanced chips and compute hardware. The remaining two archetypes—operators (hyperscalers and colocation providers) and AI architects (AI model and application developers) also materially invest in compute capacity. However, isolating their infrastructure spending is complex in the Indian context, as much of it is embedded within broader R&D, software, and platform-development budgets. This framework is increasingly relevant for India as it accelerates AI-ready datacentre capacity, grid modernization, and semiconductor-linked capital formation.
- Increase in AI Adoption
- Rising Data Demand
- Cost Competitiveness
- State Level Investment Centric Support
- Network and international connectivity. India has the potential to become a dominant player in the global submarine cable network due to its strategic geographical location. The country currently hosts around 17 international subsea cables across 14 landing stations located in Mumbai, Cochin, Tuticorin, Chennai, and Trivandrum. As of the end of 2022, the total lit capacity and activated capacity of these cables stood at 138.606 Tbps and 111.111 Tbps, respectively
- Growth in India’s Digital Economy. By 2030, India’s digital economy is projected to contribute nearly 1/5th of the nation’s overall GDP. India is on the track to become the world’s third largest economy with a projected GDP of US$ 7.3 Trillion by 2030 (as per S&P) and the share of digital economy would around US$ 1.46 Trillion