A recent industry report highlights India’s urgent need for significant infrastructure development to keep pace with the rapidly growing artificial intelligence sector. According to findings from Deloitte’s study “Attracting AI Data Centre Infrastructure Investment in India,” the country will require an additional 45-50 million square feet of real estate space and 40-45 terawatt-hours of incremental power supply by 2030 to meet the demands of AI-driven data centres.
The report, reported by PTI, identifies both opportunities and challenges in India’s potential to become a global AI hub. While acknowledging India’s competitive advantages including cost-effectiveness, renewable energy potential and strategic geographical location, it emphasizes several critical areas requiring immediate attention.
India’s current building regulations need substantial updates to accommodate specialized data centre requirements. The study recommends creating distinct construction standards for these facilities and granting them “essential service” status to ensure uninterrupted power supply. Establishing streamlined approval processes through dedicated facilitation units could significantly accelerate development timelines.
The projected power demands present another major challenge, with AI data centres expected to consume electricity equivalent to powering 70-80 million additional households. Meeting this demand will require massive expansion of renewable energy capacity alongside crucial upgrades to transmission infrastructure. The report stresses that without these improvements, India’s power grid could face severe strain.
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Connectivity infrastructure also requires substantial enhancement, particularly in rural areas where limited fiber optic networks and unreliable high-speed internet currently restrict data centre capabilities. Nationwide improvements in digital infrastructure are essential to support the low-latency requirements of advanced AI applications.
On the policy front, the study suggests comprehensive updates to data regulations, including modifications to surveillance provisions and the creation of specialized zones with favorable conditions for data centre operations. Implementing these changes could position India as a more attractive destination for global AI investments.
Deloitte India Partner Neha Aggarwal emphasized that timely action across these areas could establish India as a leader in AI infrastructure. “The foundation for success lies in developing robust computing capabilities, reliable power systems and forward-thinking policies simultaneously,” she noted.
While recognizing India’s recent progress in digital infrastructure, the report underscores the considerable work remaining to fully capitalize on the AI revolution. Strategic investments and policy reforms in the immediate future will be crucial determinants of whether India can achieve its potential as a global AI powerhouse.
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