India's AI Data Center Boom

A report by Avendus Capital>>> projects that India>>>'s rapid adoption of artificial intelligence will drive a massive infrastructure buildout, leading to the deployment of 650,000-700,000 GPUs in data centers over the next five years. This shift is expected to create a $23 billion investment opportunity and nearly triple India>>>'s data center capacity from 1.6 GW in 2025 to 5 GW by 2030. The expansion requires capital investments of approximately $25 billion. India — Mumbai>>> is anticipated to remain the largest data center hub, while cities like India — Hyderabad>>> and India — Chennai>>> are also emerging as key locations. The report highlights the growing importance of GPU infrastructure, with large-scale deployments potentially generating equity IRRs exceeding 28%. Key players like Reliance Industries>>>, Alphabet Inc.>>>, and Tata Consultancy Services>>> are planning significant AI factory projects. The broader AI market in India>>> is projected to grow from $13 billion in 2025 to $131 billion by 2032, supported by enterprise AI adoption and domestic AI capabilities, including large language models.