The fifth day of the India AI Impact Summit 2026 is underway on Friday, 20th February, at Bharat Mandapam, and the focus is clear: Artificial Intelligence cannot grow without a strong digital infrastructure. India today (20th February) signed the Pax Silica Declaration, formally joining the United States-led Pax Silica initiative.
🤖📜 #India signs US-led #PaxSilica to boost #AI, #semiconductor & critical #minerals #SupplyChain 🇮🇳🚀 https://t.co/PWYbDcixQN pic.twitter.com/1C051Ffy7i
— Economic Times (@EconomicTimes) February 20, 2026
The signing ceremony took place on the sidelines of the India AI Impact Summit 2026 in New Delhi, marking a crucial step in securing resilient global supply chains for artificial intelligence (AI), semiconductors, and critical minerals.
Pleased to share that India will be invited to join Pax Silica, a U.S.-led strategic initiative to build a secure, resilient, and innovation-driven silicon supply chain. As the world adopts new technology, it is essential that India and the United States work hand-in-hand…
— Ambassador Sergio Gor (@USAmbIndia) January 12, 2026
Policymakers, global technology CEOs, startup founders and researchers have gathered in New Delhi to discuss how AI will reshape economies in the coming decades. But beyond big speeches and futuristic promises, one theme keeps returning: India’s data centre market is booming, and the country is becoming a prime destination for investment in data centres. Data centres are no longer considered dull, boring infrastructure. At this summit, they are being talked about as the spine of India’s digital future.
PM Modi’s MANAV vision for AI
Prime Minister Narendra Modi has inaugurated the summit and shared what he called the MANAV Vision for AI. In his words, AI needs to be human-centric and needs to be driven by ethics. “AI must serve humanity,” he said, adding that India does not want technology that turns humans into data points.
We must democratise AI.
— PMO India (@PMOIndia) February 19, 2026
It must become a tool for inclusion and empowerment, particularly for the Global South. pic.twitter.com/IzH67U2uRR
Explaining the acronym MANAV, he said M stands for Moral and Ethical systems, A for Accountable governance, N for Accessible and Inclusive, A for Valid and Legitimate, and V for Value-driven innovation. He emphasised that AI must be inclusive, transparent and respectful of data sovereignty.
The M.A.N.A.V. vision for AI. pic.twitter.com/NVmxQ8bXq6
— PMO India (@PMOIndia) February 19, 2026
The Prime Minister also made it clear that India does not just want to consume AI products built elsewhere. He invited global companies to “design and develop in India,” saying the country has the talent, scale and policy clarity to become a global AI hub. But to achieve that, India must build world-class computing infrastructure within its borders.
OpenAI and Tata Group: Building AI-ready data centres
One of the biggest announcements at the summit came on Thursday, 19th February, from OpenAI, which has partnered with the Tata Group to build AI-ready data centre capacity in India.
Tata Group announces a partnership with OpenAI to create India's first AI-optimized large-scale data center, a significant step in boosting the country's AI infrastructure pic.twitter.com/muMWWLTnlt
— Reuters (@Reuters) February 19, 2026
The partnership will begin with 100 megawatts (MW) of AI-focused data centre capacity and aims to scale up to one gigawatt (GW) over time. This is not a small project. A gigawatt-scale AI data centre is considered massive by global standards. OpenAI will become the first client of Tata Consultancy Services’ HyperVault data centre division.
AI models like ChatGPT require enormous computing power. Running and training these models depends on clusters of high-end graphics processing units (GPUs). Hosting this computing power locally will reduce delays, improve performance and help companies comply with India’s data localisation and security rules.
OpenAI CEO Sam Altman has said India already has more than 100 million weekly ChatGPT users. By setting up local data centres, the company is clearly signalling that India is no longer just a user market, it is becoming a core infrastructure base.
‘India is a Nation of optimists and our vision should be to make AI work for every individual. AI is the biggest opportunity for Tech and IT industry’: Tata Group Chairman N Chandrasekaran announces India's first AI-based data centre in partnership with OpenAI at India AI Impact… pic.twitter.com/VOEPfP8ing
— Republic (@republic) February 19, 2026
The collaboration also includes rolling out ChatGPT Enterprise across Tata’s businesses, beginning with Tata Consultancy Services (TCS). TCS plans to utilise OpenAI’s Codex tools to create a standardised approach to AI-driven software development across its engineering teams.
.@TataCompanies and @OpenAI have announced a landmark collaboration to power AI‑led innovation globally. Through enterprise-ready tools, industry-specific AI solutions, and next‑generation AI infrastructure, this partnership is set to accelerate meaningful and responsible AI… pic.twitter.com/as2YVp678g
— Tata Consultancy Services (@TCS) February 19, 2026
N Chandrasekaran, chairman of Tata Sons, noted that the collaboration with OpenAI would be instrumental in establishing “state-of-the-art AI infrastructure in India” and enhancing the skill set of the country’s workforce for the AI landscape.
Google’s massive AI hub in Visakhapatnam
While OpenAI and Tata are building AI capacity, Google has already announced in October last year what it calls its biggest AI hub outside the United States.
The company is partnering with AdaniConneX and Airtel to develop the data centre and required infrastructure, including communications and green energy solutions. AdaniConneX is a 50:50 JV between Adani Enterprises and EdgeConneX. At a massive investment of $15 billion over five years, it will be Google’s largest-ever venture in India and one of its largest internationally outside the United States.
The campus of the new data centre will be established in Visakhapatnam in Andhra Pradesh, and will initially have a 1-gigawatt capacity, which will eventually be increased to several gigawatts, said Google Cloud CEO Thomas Kurian at an event held in New Delhi. The investment will be made over the course of five years from 2026 to 2030 as part of Google’s worldwide expansion of AI infrastructure. Apart from AdaniConneX, Airtel is another major collaborator in the project.
Apart from the purpose-built AI data centre infrastructure in Visakhapatnam, it will include development of new transmission lines, clean energy generation and innovative energy storage systems in Andhra Pradesh. This will not only support the data centre’s operations but also enhance the resilience and capacity of the electricity grid.
The project also includes the construction of a state-of-the-art Cable Landing Station (CLS) to host Google’s new international subsea cables that will join its extensive global terrestrial and subsea infrastructure. Airtel will also create a robust intra-city as well as inter-city fibre network as a part of this project.
“This would be the biggest AI hub that we are establishing anywhere in the world outside America”, Kurian stated, stating that the Visakhapatnam campus would be one of Google’s network of AI centres in 12 different countries.
The government of Andhra Pradesh had previously put the investment at approximately $10 billion, and stated the project would generate approximately 1.88 lakh (188,000) direct and indirect employment opportunities. The centre will combine cutting-edge AI systems, green energy inputs, and a greater fibre-optic backbone to enhance India’s expanding digital spine.
Talking about the project, Google and Alphabet CEO Sundar Pichai said, “This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure. Through it, we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.” Pichai also mentioned that he spoke with PM Narendra Modi to share details of the plan.
Great to speak with India PM @narendramodi @OfficialINDIAai to share our plans for the first-ever Google AI hub in Visakhapatnam, a landmark development.
— Sundar Pichai (@sundarpichai) October 14, 2025
This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure.…
“The Adani Group is proud to partner with Google on this historic project that will define the future of India’s digital landscape,” Gautam Adani said.
A monumental day for India!
— Gautam Adani (@gautam_adani) October 14, 2025
Adani is proud to partner with @Google to build India’s largest AI data centre campus – in Visakhapatnam – engineered specifically for the demands of artificial intelligence.
This facility will house the TPU and GPU-based compute power required for… pic.twitter.com/leypKgPTAb
As per the company, the development of this AI hub and connectivity gateway will create a powerful engine for economic growth in Visakhapatnam, the state of Andhra Pradesh, and thereafter the entire nation by driving digital inclusivity and creating tens of thousands of jobs in technology, construction and clean energy.
India’s data centre market is booming
India’s data centre market is growing at a rapid pace. It is valued at nearly $10 billion in 2025 and is expected to cross $21 billion by 2031. Installed capacity has already reached around 1.3 gigawatts, nearly triple what it was in 2020.
Cities like Mumbai, Navi Mumbai, Hyderabad, Chennai and Pune have become major hubs. Companies such as ST Telemedia Global Data Centres, NTT DATA, CtrlS, Equinix, Nxtra by Airtel and Sify Technologies are expanding aggressively.
The growth is not limited to big metros. Smaller cities are emerging as “edge” locations where data is stored closer to users to reduce delay. With 5G roll-out and rising video streaming, gaming and digital payments, demand for faster data processing is increasing.
Indian conglomerates are also making bold moves. The Adani Group has announced plans to invest up to $100 billion in data centres by 2035. Global cloud giants like Microsoft, Amazon and Google are investing billions to expand their AI and cloud infrastructure in India.
For decades, we imported technology.
— Gautam Adani (@gautam_adani) February 17, 2026
Now we are building the backbone.
Renewable energy. Grid resilience. Hyperscale AI.
A $250B intelligence ecosystem in motion.
India will not follow the AI century.
India will shape it. 🇮🇳 pic.twitter.com/fqv4S42OAb
What exactly are data centres?
At its simplest, a data centre is a large facility filled with computers and networking equipment. It stores, processes and distributes digital information. Every time someone makes an online payment, watches a video, sends a message or runs a cloud-based application, a data centre is working in the background.
Earlier, data centres were just rooms with a few large computers. Today, they are massive campuses with thousands of servers connected to high-speed fibre networks. Modern data centres use both physical hardware and virtual technologies to manage workloads across cloud and on-premise systems.
They have four main components:
- IT equipment: Data centres host servers, storage devices, and network devices that handle data processing, storage, and transmission needs.
- Infrastructure and utilities: Data centres are equipped with air-conditioning, redundant electricity systems, and electricity conditioning to ensure uninterrupted operations. Cooling systems and equipment to handle air quality and temperatures, such as air handlers, chillers, fans, sensors, and water pipes and tanks, ensure servers run efficiently.
- Connectivity: Data centres are typically located near high-bandwidth fibre networks that enable low-cost, high-speed data exchange.
- Physical security: Robust physical security measures, including fire suppression systems and restricted access, are typically implemented to protect the centre’s equipment and data.
Why India is being chosen
Several factors are making India attractive for data centre investments.
- Data localisation rules under laws like the Digital Personal Data Protection (DPDP) Act of 2023 require certain data to be stored within the country. Financial regulators like the RBI have already mandated local storage for banking data.
- India produces a huge amount of digital data. It has one of the largest internet and mobile user bases in the world. Yet, until recently, it had only a small share of global data centre capacity. That gap is now being filled. This is driving operators to explore building smaller, modular data centres in Tier 2 and Tier 3 cities, creating a distributed national data infrastructure.
- Cost advantages matter. Electricity and construction costs are cheaper in dollar terms compared to many Western countries. Land costs are also relatively lower in certain states.
- India is a stable democracy with a large pool of technology talent. While there is still a shortage of specialised data centre engineers, the country has a strong base of IT professionals who can be trained. A modern data centre needs highly specialised mechanical and electrical engineers, heating, ventilation and air conditioning (HVAC) and cooling plant operators, cybersecurity experts in critical infrastructure, and data centre infrastructure management (DCIM) specialists. This skills gap is on both spectrums, that is, blue and white collar, which policymakers and operators need to bridge through public-private partnership agreements in professional training and university-level programmes.
States are competing to attract investment. Maharashtra offers lower electricity tariffs for data centres. Karnataka provides incentives for renewable-powered facilities. Tamil Nadu and Telangana are also promoting such investments.
When unveiling the budget earlier this month, Nirmala Sitharaman, the finance minister, announced that foreign owners of data centres located in the country will enjoy a tax holiday until 2047, the centenary of India’s independence and the target for the government’s goal of becoming a developed country. This long-term policy clarity gives investors confidence.
A generational opportunity
India’s data centre revolution is not just about buildings filled with servers. It is about building the digital plumbing of the country’s trillion-dollar digital economy.
However, challenges remain. Power reliability must improve. Water usage must be managed carefully. Skilled manpower must be trained. And regulatory clearances must become smoother through single-window systems.
If done right, the rapid build-out of data centres can secure India’s digital sovereignty, attract global capital and support AI innovation across sectors like healthcare, finance and education.
As the AI Impact Summit 2026 makes clear, the future of artificial intelligence in India will depend not just on algorithms and talent, but on the massive, humming, energy-hungry data centres that quietly power it all.
