Kathmandu. As the global competition for artificial intelligence (AI) intensifies, India has ambitious plans to invest $200 billion in data centre infrastructure over the next few years, aiming to position itself as a trusted AI partner. This initiative is poised to make India a major provider of AI services and infrastructure, not just a technology user.
India’s Electronics and Information Technology Minister Ashwini Vaishnaw told The Associated Press in an emailed interview that India is now being seen as a trusted AI partner of the Global South nations looking for “open, affordable and development-oriented solutions.” The participation of at least 20 world leaders and representatives of the tech industry at the flagship AI Impact Summit in New Delhi this week also indicates India’s growing role.
At a time when AI poses challenges globally, such as jobs, regulation, and centralisation of computing power, India has made infrastructure building a central pillar of its strategy. According to Vaishnaw, the government has already implemented a common computing facility with more than 38,000 graphics processing units (GPUs). This will enable startups, researchers, and public institutions to access advanced computing at no high cost. “AI doesn’t have to be exclusive, it has to be widely accessible,” he said.
The government has announced a long-term tax exemption to encourage the data center industry. This is expected to attract foreign capital by providing policy certainty. The big investments that have been announced recently are also linked to this strategy. Google plans to invest $15 billion over five years to set up its first AI hub in India. Microsoft then announced that it would invest $17.5 billion over four years to expand cloud and AI infrastructure. Amazon has pledged to invest $35 billion by 2030 to prioritize AI-driven digitization. All of these commitments are part of a massive two-trillion-dollar investment pipeline.
Along with infrastructure expansion, India has also prioritized the development of sovereign basic AI models trained in its own languages and local contexts. Vaishnav said that some models are in a position to compete with big language models by meeting global standards. According to him, India does not restrict itself to the role of a mere “rule-maker or rule-abiding”, but aims to be an active participant in the formulation of practical and balanced international standards.
The government is advancing the development of sector-specific solutions through the AI mission in public-private partnership. Addressing concerns that AI could affect white-collar and tech jobs, the emphasis is on building an AI-ready workforce through universities, skills programs and online platforms. The nationwide 5G network and the young, tech-savvy population have been taken as a strong foundation for the AI adoption process.
But as AI expands into sensitive sectors such as governance, health, and finance, the need for security standards remains the same. Mr. Vaishnaw presented a four-pronged strategy that includes an implementable global framework, reliable infrastructure, regulation of misinformation, and strengthening human and technical capacity.
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