India’s Generative AI Market to Soar to $6.4 Billion by 2030

India's Generative AI market is poised for explosive growth, projected to reach $6.4 billion by 2030, according to a recent ANAROCK report. This surge is driven by an increasing appetite for AI-driven solutions across industries, reshaping the nation’s technological landscape.

AI Adoption Fuelling Data Centre Evolution 

The rapid rise of generative AI applications — from content creation and automation to advanced analytics — is transforming India’s data centre ecosystem. Businesses are demanding faster, more efficient data processing capabilities to support real-time AI workloads, prompting data centre operators to scale up infrastructure and adopt innovative solutions.

Emergence of Edge Data Centres in Tier-II Cities

One notable trend is the rise of edge data centres, particularly in Tier-II cities like Jaipur, Ahmedabad, Visakhapatnam, Kochi, Bhubaneswar, Lucknow, and Patna. These facilities bring data processing closer to end users, slashing latency and enabling faster AI-driven insights. As generative AI applications expand into sectors such as healthcare, retail, and manufacturing, edge computing will be pivotal in supporting real-time decision-making.

Green Data Centres: A Sustainable Shift

With data centre energy consumption soaring, sustainability has become a top priority. Operators are increasingly investing in green data centres powered by renewable energy sources like solar and wind. Energy-efficient cooling technologies and advanced power management systems are also being adopted to reduce carbon footprints. This shift aligns with India’s commitment to achieving net-zero emissions and fostering sustainable digital growth.

Investment Surge Strengthens Infrastructure

India’s data centre industry has attracted substantial investments, exceeding $6.5 billion over the past decade. The sector's infrastructure status has made financing more accessible, encouraging private equity firms, joint ventures, and international players to expand their footprint. This influx of capital is accelerating the development of new facilities, enhancing capacity, and reinforcing India’s position as a global digital powerhouse.

Future Outlook: AI-Driven Innovation

As generative AI continues to evolve, its influence on India’s economy will intensify. Industries ranging from entertainment and education to finance and healthcare are embracing AI to drive innovation and improve efficiencies. The combination of edge computing, sustainable practices, and strong investor confidence positions India to capitalise on this technological revolution, unlocking new opportunities and reshaping the digital economy.

By 2030, India’s generative AI boom won’t just transform businesses — it will redefine how the country connects, creates, and competes on the global stage.