Google and OpenAI Power India’s Data Centre Boom, Opening New Avenues for Traders and Investors

India’s Data Centre Boom: How Google and OpenAI Are Powering India’s AI Infrastructure Revolution

India is rapidly emerging as a global hub for artificial intelligence (AI) infrastructure as leading technology giants such as Google, OpenAI, Microsoft, and Amazon commit billions of dollars to expanding their data and cloud capabilities. The country’s transformation into an AI powerhouse is creating ripple effects across its $5.4 trillion stock market, offering investors new opportunities to capitalize on one of the most powerful digital revolutions of this decade.

Over the last year, India’s equity market has lagged behind global peers like the US and China due to the absence of homegrown AI giants such as Nvidia or Cambricon Technologies. However, as multinational firms shift their focus to India’s growing digital landscape, the market is finding its own AI-driven momentum through infrastructure, energy, and data management firms that support this ecosystem. According to CBRE Group Inc., investments in India’s data centre market are expected to cross $100 billion by 2027, underscoring the scale of the opportunity.

Global Tech Giants Anchor India’s AI Infrastructure Push

Alphabet Inc.’s Google has taken the lead with a $15 billion investment plan to build an AI infrastructure hub in southern India, partnering with domestic firms including AdaniConneX and Bharti Airtel. This marks one of the largest tech infrastructure commitments in India’s history. Similarly, ChatGPT-maker OpenAI is exploring partnerships to establish a massive data centre in the country, reflecting the growing strategic importance of India in the global AI supply chain.

The momentum doesn’t stop there. Earlier this year, Microsoft announced a $3 billion investment to expand its cloud and AI capabilities, while Amazon Web Services (AWS) confirmed plans to spend $12.7 billion by 2030 to strengthen its cloud presence in India. Together, these projects are laying the groundwork for a robust AI infrastructure network that will power industries ranging from finance and logistics to healthcare and education.

Industry experts believe this wave of investment signals a structural shift in India’s digital economy. “India is powering the AI era through the infrastructure needed to run it — the servers, storage, and energy capacity,” said Shambhavi Gupta, founder of the global macro insights platform Nine Spot Seven. “Unlike the speculative tech rallies seen elsewhere, this one is rooted in tangible assets.”

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Local Companies Emerge as Key Beneficiaries

The growing AI infrastructure boom is turning the spotlight on domestic firms that provide the building blocks of this transformation — from data centre operators and power suppliers to equipment manufacturers and cooling solution providers.

AdaniConneX, a joint venture between Adani Enterprises and Bharti Airtel, is directly involved in Google’s Visakhapatnam project, signaling deep integration between global and local players. Reliance Industries, owned by billionaire Mukesh Ambani, is also preparing to invest up to $15 billion to build a one-gigawatt data centre as part of its broader digital expansion plans. Collectively, Adani, Airtel, and Reliance could account for nearly 40 percent of India’s total data centre capacity by 2030, according to estimates from Jefferies Financial Group.

Meanwhile, Tata Consultancy Services (TCS), India’s largest software exporter, is also planning to set up an AI-focused data centre, aiming to blend its software expertise with next-generation infrastructure. Sify Infinit Spaces and Fractal Analytics — two pioneers in the domestic AI space — have already filed for public offerings to raise funds for expansion, indicating the growing investor confidence in India’s AI and data-driven future.

Infrastructure and Power: The Backbone of AI Growth

As the AI revolution demands massive computing power, the need for reliable energy and cooling infrastructure has never been greater. A large portion of capital expenditure in data centres — nearly 40 percent — is expected to be directed toward electrical and power systems. Companies such as Hitachi Energy India, Siemens, Schneider Electric, and ABB India are seeing renewed interest from investors as they supply critical components for power distribution and automation.

“The data centre investments are going to be a major boost for India’s power sector,” said Ashish Gupta, Chief Investment Officer at Axis Mutual Fund, which manages over $40 billion in assets. “Power and related costs form a significant portion of overall capital expenditure, and that will drive growth for energy and infrastructure companies.”

Cable and wire manufacturers like Havells India, RR Kabel, and Dynamic Cables are also witnessing increased demand, while cooling solution providers such as Blue Star and Voltas are gaining traction as data centre operators focus on energy efficiency amid India’s warm climate.

Tech Manufacturing and Cloud Infrastructure Lead the Way

Beyond the physical infrastructure, companies in server manufacturing and cloud infrastructure are playing a crucial role in India’s AI evolution. Netweb Technologies India, a domestic leader in servers and high-performance computing solutions, has seen its shares nearly double this year as demand for data storage and processing capacity continues to rise. Similarly, E2E Networks, which provides cloud infrastructure and managed services optimized for AI workloads, has emerged as a strong player in the fast-growing enterprise computing market.

These developments show that India’s AI journey is not limited to software or coding talent — it now extends into the physical and digital infrastructure that enables machine learning, automation, and data processing at scale.

India’s AI Future: A Fusion of Innovation and Infrastructure

The AI-driven data centre boom represents a significant turning point for India’s economy. It signals a transition from being primarily a service-led technology exporter to becoming a global leader in digital and physical AI infrastructure. For investors, it offers exposure not just to the technology sector but to a broader ecosystem encompassing energy, logistics, manufacturing, and data management.

“India’s AI growth story is about convergence — of technology, infrastructure, and innovation,” said Gupta of Nine Spot Seven. “This is where digital ambition meets physical capacity.”

As global players deepen their presence and Indian firms strengthen their foundations, the coming years may see India rise as one of the world’s most powerful AI infrastructure destinations — a future where servers, sensors, and sustainability drive the next phase of the country’s economic growth.

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