India Steps Up AI Game with National Datacentre Investment Blueprint

In a decisive push to anchor India’s leadership in the global AI race, the NITI Aayog Frontier Tech Hub convened a power-packed workshop this week, rallying states to aggressively pursue AI-ready datacentre investments. The message was clear: the age of artificial intelligence won’t wait, and India must act now to build the infrastructure of tomorrow.

Held in collaboration with Deloitte as the Knowledge Partner, the workshop brought together senior state officials, central ministries, and top industry stakeholders in Delhi to map out a nationwide blueprint for AI infrastructure. As the country stares at a compute shortfall despite its data richness, policymakers agreed that India cannot afford to lag.

Government Asks States to Shift Focus from Land to AI Ecosystems

“India generates nearly a fifth of the world’s data but hosts only 3% of global datacentre capacity,” NITI Aayog CEO B.V.R. Subrahmanyam reminded the gathering. “This is the gap we must close—not just with land, but with ecosystems built on energy, compute, and innovation.”

Subrahmanyam’s remarks underscored the urgency of aligning policy and infrastructure to attract hyperscale AI investments. He urged states to move beyond transactional models focused solely on land or incentives, and instead build holistic, AI-centric development strategies rooted in six pillars—land, power, network, compute, talent, and enabling policy.

The workshop gained further momentum with the release of a landmark report, "Accelerating AI Infrastructure Investments in India," which outlines an actionable framework for states to become AI infrastructure hotspots. The report emphasizes clean energy as a critical differentiator, noting that datacentres could consume up to 1,000 terawatt-hours of electricity globally by 2026—double the demand today.

States Urged to Act Fast as NITI Aayog Maps India’s AI Future

Industry experts at the event echoed the need for bold reforms. Romal Shetty, CEO of Deloitte South Asia, pointed to India’s unique convergence of talent, energy resources, and digital ambition.

“This is India’s AI moment. But it needs orchestration—between the Centre, states, and the private sector,” Shetty said.

Participants from over ten states, along with representatives from key ministries—Finance, Power, Telecom, Renewable Energy, and Defence—discussed strategies to streamline permissions, enhance green energy access, and create plug-and-play datacentre zones. Debjani Ghosh, Distinguished Fellow at NITI Aayog and President of NASSCOM, emphasized the opportunity for states to emerge as AI-era growth engines. 

“If you missed the manufacturing boom, don’t miss this one. AI infrastructure can redefine your economic future.”

NITI Aayog Leads Charge to Make India a Global AI Compute Hub

From green power corridors to AI-centric skill clusters, the discussions pointed toward a paradigm shift in how Indian states view digital infrastructure. NITI Aayog officials confirmed that the Frontier Tech Hub will handhold interested states in policy design, investment roadshows, and project execution.

The AI infrastructure workshop is the latest chapter in NITI Aayog’s broader campaign to accelerate India’s transition into a future-ready digital economy. As global demand for AI compute explodes, India’s real challenge isn’t just about catching up—it’s about leading with scale, sustainability, and speed.

“The world is not waiting. Neither should India,” Subrahmanyam concluded.