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Tuesday, February 17, 2026

India targets USD 200 billion data center push to position itself as global AI partner

February 17, 2026
2 MIN READ
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NEW DELHI: As global competition in Artificial Intelligence intensifies, India has unveiled an ambitious plan to attract USD 200 billion in data center investment over the coming years, aiming to establish itself as a trusted AI partner, particularly for countries in the Global South.

Electronics and IT Minister Ashwini Vaishnaw said India is emerging as a provider of open, affordable, and development-focused AI solutions. He pointed to strong international participation at the recent AI Impact Summit in New Delhi as evidence of India’s growing influence.

The government has operationalized a shared computing facility with more than 38,000 GPUs, enabling startups and researchers to access advanced computing at lower cost. Long-term tax incentives are also being offered to attract foreign investment.

Major global firms have announced significant commitments. Google plans to invest USD 15 billion over five years to establish its first AI Hub in India. Microsoft has pledged USD 17.5 billion over four years to expand cloud and AI infrastructure, while Amazon has committed USD 35 billion by 2030 to advance AI-driven digitization. These investments form part of the broader USD 200 billion pipeline.

India is also developing sovereign foundational AI models trained in local languages and contexts, with some reaching globally competitive standards. Through its AI Mission, the government is promoting sector-specific solutions and workforce development to prepare for AI-driven transformation.

Emphasizing balanced global standards, Vaishnaw outlined a four-pronged strategy focused on global cooperation, trusted infrastructure, misinformation regulation, and capacity building. He stressed that the future of AI must be inclusive, widely accessible, and development-oriented.