India’s data center landscape is experiencing unprecedented growth, fueled by the increasing adoption of AI and the demand for robust compute infrastructure. With India currently holding less than 5% of global data center capacity, the opportunity for expansion is immense. Companies are stepping up to meet this demand, investing heavily in building AI-ready facilities across the country.
Reliance Accelerates Data Center Drive in Vizag
Reliance Industries, in a joint venture with Brookfield and Digital Realty (Digital Connexion), is set to invest a staggering $11 billion by 2030 to develop 1 GW capacity data centers in Visakhapatnam. This “Reliance’s $11 billion Vizag drive” will establish a sprawling 400-acre AI data center, positioning Vizag as a key anchor location in Digital Connexion’s India roadmap. The JV already has a data center campus in Chennai and plans to develop another one in Mumbai. This significant investment underscores Reliance’s commitment to strengthening India’s digital infrastructure and supporting the nation’s growing AI ambitions.
L&T’s Big Data Center Push
Reliance is not alone in recognizing the potential of the data center market. L&T is also making significant strides, seeking approval for five new data center projects. These projects aim to increase L&T’s data center capacity from 30MW to a remarkable 300MW by 2031, marking a tenfold increase. L&T has rebranded its digital vertical as L&T-Vyoma, with its Chennai campus already boasting a 30MW capacity spread across 300 acres, highlighting its commitment to this sector.
HCL Tech Partners with SAP
Further demonstrating the industry’s collaborative spirit, HCLTech has partnered with SAP to develop Physical AI solutions. This partnership aims to integrate intelligence into real-world operations across various industries, exploring next-generation use cases that leverage AI in physical and industrial environments, showcasing the innovative applications of data centers.
Crisil’s Big Projection: Cashing in on Data Centers
The economic potential of AI data centers is substantial. Crisil Ratings projects that data center operators in India are expected to generate an annual revenue of Rs 20,000 crore by FY28, with a projected annual surge of 20-22%. This growth is expected to drive a doubling of industry capacity to 2.3-2.5 GW by March 2028, with capital expenditure in the sector rising to Rs 55,000-65,000 crore between FY26-FY28. This surge is fueled by the rapid adoption of cloud computing, growing AI investment, and the proliferation of 5G technology, all driving demand for low-latency applications.
Disclaimer: This blog post is for informational purposes only. All investment decisions should be made after conducting thorough research and consulting with a financial advisor.
Image Credit: Financial Express
