Will India's AI Surge Require an Extra 45-50 Million Sq Ft of Real Estate?
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Synopsis
As the demand for AI infrastructure skyrockets, India faces a significant challenge: the need for an additional 45–50 million square feet of real estate and 40-45 TWH of power by 2030. This report explores the steps necessary to achieve this ambitious goal and highlights the potential for India to become a global AI hub.
Key Takeaways
- India may need an additional 45-50 million sq ft of real estate for AI.
- Incremental power demand could reach 40-45 TWH by 2030.
- Key pillars include real estate, power infrastructure, and talent development.
- Strengthening policies will be critical for growth.
- India's strategic location aids in serving global markets.
New Delhi, May 8 (NationPress) With the increasing demand for artificial intelligence (AI) infrastructure, India might need an extra 45–50 million square feet of real estate and 40-45 terawatt hours (TWH) of incremental power by 2030 to satisfy this growing need, according to a recent report released on Thursday.
India offers competitive advantages including cost efficiency, a focus on renewable energy, and a key geographical position for the development of data centres, as highlighted by a Deloitte report.
The report emphasizes that strategic policy actions will be essential to establish India as a worldwide AI hub.
Six fundamental pillars are identified for India to harness its full potential in creating a leading AI-ready ecosystem.
These pillars include real estate, power and utilities infrastructure, connectivity and network infrastructure, compute infrastructure, talent, and policy framework.
"To expedite its AI capabilities and achieve its potential, India must implement enabling policies that bolster the sector. Building out AI-ready infrastructure is crucial to meet the surging demand for data analytics and processing,” stated S Anjani Kumar, Partner at Deloitte India.
“Furthermore, enhancing research and development (R&D), refining talent pipelines, securing vernacular datasets, and implementing supportive policies can further boost AI-driven growth. By tackling key investment areas and encouraging robust public-private partnerships, India can reinforce its status as a leader in the global AI ecosystem,” Kumar added.
The strategic location of India enables it to effectively cater to both domestic and international markets, making it a crucial hub in the global data centre ecosystem.
Nevertheless, India's ambition to become a global AI hub necessitates a reevaluation of conventional data centre infrastructure. A stronger emphasis on constructing high-performance compute infrastructure, expandable power and cooling systems, and effective networking infrastructure, alongside a reconsideration of the policy framework, can transform India into a prime location for AI-powered data centre development in the coming years,” noted Neha Aggarwal, Partner at Deloitte India.
Despite offering advantages in data centre real estate due to lower land and labor costs, substantial new construction is imperative to fulfill the additional AI data centre capacity.
The report underscores the rising interest in colocation models and government initiatives that provide incentives under various state government data centre policies as key drivers of growth.
From a policy standpoint, the report recommends establishing a distinct category for data centres in the National Building Code and recognizing them under the Essential Services Maintenance Act to further encourage specialized infrastructure development.
Moreover, expediting and simplifying approvals through the establishment of data centre facilitation units could significantly enhance the deployment of data centres, it concluded.
Point of View
It is clear that India's opportunity to become a leader in AI infrastructure is immense. The country must harness its strengths and focus on strategic policies to ensure that it meets the increasing demands of this sector. A commitment to innovation, collaboration, and development will be key to realizing this vision.
NationPress
21/05/2025
Frequently Asked Questions
What infrastructure is needed for AI growth in India?
India requires robust real estate, power utilities, connectivity, compute infrastructure, skilled talent, and a supportive policy framework to foster AI growth.
How much additional power will India need for AI by 2030?
India could need an additional 40-45 terawatt hours (TWH) of power to meet the demands of AI by 2030.
What role do government policies play in AI infrastructure?
Strategic government policies are essential to incentivize the development of AI infrastructure, including data centres.
