SynopsisIndia requires substantial investment for its digital economy's infrastructure. AI adoption and cloud computing will drive significant data centre capacity needs. This expansion necessitates considerable capital for both traditional and AI-focused facilities. Supporting this growth will also demand vast amounts of electricity annually. Addressing power and infrastructure challenges is crucial for future development.India may require investments of $350-435 billion by 2030 to develop artificial intelligence (AI) and data centre infrastructure needed to support its expanding digital economy, according to a report by OmniScience Insights Labs.The report estimated that India will need 19-23 gigawatts (GW) of operational data centre capacity by 2030, compared with the current installed capacity of around 1.6 GW. The demand is expected to be driven by AI adoption, cloud computing, digital public infrastructure and data localisation.It said traditional data centres would account for 12-15 GW of the total capacity, while AI infrastructure would require 2-3 GW for AI training and 5-6 GW for AI inference.According to the report, traditional data centres would require investments of $77-96 billion, while AI infrastructure, including training and inference clusters, would need $270-340 billion. It noted that AI-focused data centres require six to seven times higher capital investment per megawatt than conventional facilities."The opportunity extends well beyond data centre developers. It encompasses power generation, transmission infrastructure, transformers, switchgear, electrical equipment, cooling systems, construction, networking equipment, semiconductors and the broader digital infrastructure ecosystem," the report said.The report added that supporting the projected data centre capacity could require around 160 terawatt-hours (TWh) of electricity annually by 2030, equivalent to nearly 6 per cent of India's projected electricity consumption. This could rise to around 8 per cent by 2035 as AI adoption expands.Around $160-200 billion of investments have already been announced for India's data centre sector, reflecting strong industry momentum. It added that government measures, including infrastructure status for large data centres, tax incentives and state-level policies, are supporting investment.However, the report said further expansion would depend on addressing challenges related to power availability, transmission infrastructure, water management and project execution.It added that India's growing AI ecosystem could make data centres and related power infrastructure one of the country's biggest digital infrastructure buildouts over the rest of the decade. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now