India to Boost AI and Data Center Capabilities with 10,000 New GPUs

India is set to enhance its computational power by acquiring 10,000 GPUs, aiming to boost its AI capabilities and data center capacity. The country, generating 20% of the world's data, is rapidly expanding its digital infrastructure.

India, a leading generator of digital data, is poised to significantly enhance its computational capabilities by acquiring 10,000 graphics processing units (GPUs) within the next 18 months. This initiative was announced by Amitabh Kant, India’s G20 Sherpa, who highlighted the country's substantial contribution to global data generation and artificial intelligence (AI) development.

In a recent post on his X timeline, Kant emphasized that India, the world’s most populous country, generates 20% of the world’s data. Additionally, India ranks second globally in the number of GitHub AI projects, contributing 19% of the total projects. “This demonstrates our vibrant and active engagement in AI development on an international scale,” Kant stated. He further noted that AI presents a transformative opportunity for improving learning and health outcomes, as well as enhancing human development indices in India.

A report by CBRE South Asia Pvt. Ltd., a leading real estate consulting firm, revealed that India leads major Asia Pacific countries in data center capacity, excluding China, with a capacity of 950 megawatts (MW). The report highlighted that India has surpassed countries such as Australia, Hong Kong SAR, Japan, Singapore, and Korea in this regard. Furthermore, India is expected to record the highest capacity addition of 850 MW between 2024 and 2026.

Data centers, which are large groups of networked servers used for remote storage and data distribution, are crucial to supporting India's digital infrastructure. According to a March report by CareEdge Ratings, India’s data center industry is in a growth phase. The capacity is projected to double from approximately 0.9 gigawatts (GW) in 2023 to 2 GW by 2026. This expansion is expected to require an estimated capital expenditure of Rs 50,000 crore over the next three years, presenting significant investment opportunities.

Despite generating 20% of the world's data, India currently holds only a 3% share of global data center capacity. The country's mobile data usage is the highest globally in terms of exabytes per month. CareEdge Ratings anticipates that the need for data localization will drive compulsory investments in data centers, with states offering cost-saving incentives to attract these investments.

Maulesh Desai, Director at CareEdge Ratings, pointed out that India's shift from a developing to a developed market economy is being driven by a digital revolution. Key factors in this rapid digitization include e-commerce, internet payments, online streaming, and the adoption of new technologies such as 5G, IoT, and AI. Additionally, the share of edge data centers is expected to increase to meet the growing demand from tier II and tier III cities, ensuring lower latency.

In summary, India’s strategic investments in GPUs and data centers are set to significantly bolster its computational power and support its rapid digital growth, positioning the country as a major player in the global digital economy.