Why US Tech Giants Are Investing $67.5 Billion On India’s AI, Data Centre Growth | Explained

US Tech Giants: India is emerging as a major global hub for artificial intelligence and data centre infrastructure, with leading US technology companies committing massive investments to the country’s digital ecosystem. Microsoft, Amazon, Google, and Meta are collectively channelling tens of billions of dollars into AI-driven computing and data storage facilities, underscoring the surging global demand for digital capacity and cloud services.

Where The Money Is Going

Microsoft has announced plans to invest $17.5 billion in AI-related projects across India, while Amazon is set to spend $35 billion over the next five years to expand its AI and cloud operations in the country.

Google, meanwhile, has committed $15 billion to develop large-scale data centres in partnership with Indian conglomerates Adani Group and Bharti Airtel. Meta is also building a major facility near Google’s proposed sites, alongside several other projects led by domestic firms.

Together, these commitments total at least $67.5 billion, making it one of the largest single-sector investment waves India has ever witnessed.

“This is going to be one of the largest single-sector investments that India’s ever seen,” Somnath Mukherjee, Chief Investment Officer at ASK Wealth Advisors in Mumbai.

Why India Is Central To The Bet

The scale of investment reflects growing confidence in India’s vast digital market and expanding internet user base. While India generates nearly one-fifth of the world’s data, it currently holds only a small share of global data storage infrastructure.

“India is the largest consumer of data in the world, but it has barely five per cent of American data capacity,” Mukherjee noted.

Despite ongoing trade frictions between New Delhi and Washington, including higher tariffs announced by the US earlier this year, the report said investor interest in India’s digital sector has remained strong.

Data Localisation And New Hubs

India has also been examining steps to cut reliance on overseas servers, including proposals that would require companies to store certain categories of data locally. Since 2018, policymakers have debated data localisation laws, with sectors such as banking and messaging already operating under such rules.

New data centre clusters are now taking shape across the country, particularly in coastal regions and cities like Hyderabad. These locations have attracted major investments by offering policy incentives, dependable power supply, and better access to water.

For India, the capital inflow marks a strategic effort to cement its position in the global digital economy, even as long-term challenges related to land availability, electricity, and water resources continue to pose risks.

ALSO READ: Myanmar Elections Begin After Five Years Of Civil War As Junta-Led Party Expected To Win