When it comes to measuring infrastructure development, it has been conventionally measured through key infra assets such as railways, rail networks, airports, ports, power plants and urban expansion. While these assets remain fundamental to economic growth, a new category of infrastructure is increasingly emerging as a crucial determinant of the country’s future and progress. This new category is ‘digital infrastructure’, which is guiding the country into a new phase. Digital India (Pexel)The digital infrastructure needs are changing today, with Artificial Intelligence (AI), cloud services and digital platforms becoming a bigger part of everyday life and business. Earlier, the focus was on moving people and goods efficiently. Today, it is also about handling massive amounts of data quickly, securely and reliably. The countries that build this capability well will have a clear advantage in the years ahead. The global race to build digital infrastructure is already underway. According to a preliminary data published in a report in January this year by UN Trade and Development (UNCTAD), data centres accounted for more than one-fifth of global greenfield project values in 2025, with announced investments exceeding $ 270 billion. What marks this huge surge is the rising demand for computing capacity, particularly when AI is bringing in transforming across multiple sectors like healthcare and finance to manufacturing and education to e-governance and compliances.This collective digital and technological shift is going to benefit the country in unique ways. With one of the world's largest digital user bases, a thriving startup ecosystem, rapidly expanding digital public infrastructure and increasing enterprise adoption of AI, the country's demand for computing power is expected to rise dramatically over the next decade.However, the opportunity extends far beyond the construction of data centres themselves. It’s not an easy task to build India’s digital backbone which requires an integrated infrastructure ecosystem. This would mean combining reliable power, advanced connectivity, sustainable urban planning, logistics efficiency and long-term policy support.AI is accelerating this need. Unlike traditional computing workloads, AI applications require significantly greater processing power, high-performance computing capacity, advanced cooling systems and uninterrupted energy supply. That is the reason why infrastructure supporting next-generation computing is becoming increasingly sophisticated and capital-intensive.As businesses, governments and consumers rely more on digital services, India's data centre sector is growing quickly. With India’s current data centre capacity estimated at around 1,280 MW, industry projections suggest it could grow four to five times by 2030.What often gets overlooked is that a data centre is not just a technology asset. Every facility creates demand for construction, power, telecom infrastructure and skilled talent, making it an important driver of local economic activity. In this way, data centres attract long-term capital, generate employment across construction, engineering, operations and technology services, and stimulate demand across multiple industries including real estate, power, telecommunications and manufacturing.Yet, the success of this ecosystem will depend on whether India can build the supporting infrastructure at scale.One of the biggest requirements for digital infrastructure is reliable power. As data centres have to operate 24x7, they need a reliable supply of power to operate seamlessly. Undoubtedly, India has already strengthened its power infrastructure and increasing investments in renewable energy and energy storage to support long-term growth. Connectivity has become equally important. High-quality fibre networks and strong digital connectivity are now becoming as critical as physical infrastructure such as roads, railways and airports. Both physical and digital networks will need to grow together, as India's digital infrastructure expands. A key role in supporting this growth will be played by urban development. Data centres require carefully planned locations with access to power, connectivity, water management systems and skilled talent pools. As a result, digital infrastructure is emerging as an important component of the broader urban and industrial development agenda.Policy support will also play an important role in shaping the sector's growth. In the Union Budget 2026–27, the government announced a tax holiday until 2047 for eligible foreign cloud service providers operating through India-based data centre infrastructure. Given the large investments and long development timelines involved in such projects, measures like these can help attract capital and encourage companies to expand their digital infrastructure footprint in India.Data localisation is increasingly becoming a key pillar of India's digital infrastructure strategy. The Digital Personal Data Protection (DPDP) Act and other initiatives such as Classification of Data, AI Mission, push for more Digital Governance administered by the ministry of electronics and information technology (MeitY) , has strengthened the framework for data governance and encouraged greater domestic data storage, while industry bodies such as NASSCOM and DSCI too continue to advocate localisation norms in line with the vision of Atmanirbhar Bharat. At the state level, Haryana's updated Data Centre Policy and Make in Haryana Industrial Policy aim to attract over ₹5 lakh crore in investments. Meanwhile, Andhra Pradesh has unveiled a roadmap for a 15 GW power transmission network to support 16 proposed data centre projects, reinforcing Visakhapatnam's emergence as a major digital infrastructure hub.This also fits well with India's Viksit Bharat 2047 vision. Just as roads and railways supported economic growth in the past, digital infrastructure will play an equally important role in the years ahead.For India, the opportunity is particularly significant because it intersects with multiple national priorities—economic growth, technological self-reliance, employment generation, sustainability and global competitiveness.India's digital economy is already among the fastest growing in the world. The next challenge is ensuring that the infrastructure beneath it grows with equal ambition. Building that digital backbone may well become one of the most consequential infrastructure opportunities of our generation one that has the potential to shape India's economic trajectory for years to come.(The views expressed are personal)This article is authored by Amit Sarin, managing director, Anant Raj Limited.