India aims to secure up to $200 billion in investments for data centers to become a hub for artificial intelligence (AI), as stated by the country’s electronics and information technology minister, Ashwini Vaishnaw, on Tuesday.
This investment effort highlights the technology sector’s reliance on India as a key resource for AI development. India anticipates these investments will bolster its digital transformation by introducing significant infrastructure and foreign capital.
As countries work to leverage AI’s economic benefits, they face challenges like job disruption and regulatory concerns. ‘Today, India is being seen as a trusted AI partner to the Global South,’ Vaishnaw said, amid a major AI Summit in New Delhi involving global leaders and tech executives.
In recent months, Google announced a $15 billion investment in India for its AI hub, Microsoft committed $17.5 billion for cloud and AI infrastructure, and Amazon pledged $35 billion by 2030 to expand its AI-driven business in the country.
The strategy focuses on making AI accessible, with India providing shared computing facilities for startups and researchers using over 38,000 graphics processing units, said Vaishnaw. The government has introduced a long-term tax holiday for data centers to attract global investments.
India is also developing AI models tailored to local languages and contexts, some of which meet international standards. The country aims to actively participate in shaping global AI usage rules and expects to become a major AI service provider.
Additionally, the Indian government is focusing on reskilling the workforce for AI, supported by widespread 5G and a young, tech-savvy population. Vaishnaw discussed a strategy for AI that includes global frameworks, trusted infrastructure, misinformation regulation, and enhanced capacity to manage risks.
