Australian data centre giant AirTrunk has announced plans to invest approximately ₹3 lakh crore (around $30 billion) in India, with Prime Minister Narendra Modi on Friday, 5 June welcoming the commitment as a landmark step toward cementing India's standing as a global hub for cloud computing and artificial intelligence. The investment also includes a target to develop 5 GW of data centre capacity — among the largest single pledges in India's digital infrastructure history.

What AirTrunk Has Committed

AirTrunk's proposed outlay of ₹3 lakh crore covers the build-out of large-scale data centre infrastructure across India, with a stated capacity target of 5 GW. If executed in full, it would rank as one of the most substantial foreign commitments to India's digital backbone to date. The company is headquartered in Australia and operates data centres across the Asia-Pacific region.

What PM Modi Said

Reacting via a post on social media platform X, Prime Minister Modi described the development as evidence of accelerating momentum in India's digital infrastructure journey. 'India's digital infrastructure journey is gathering remarkable momentum. AirTrunk has announced plans to invest around ₹3 lakh crore ($30 billion) in India, and develop 5 GW of data centre capacity,' he wrote. He added: 'This is among the largest proposed investments in the country's digital infrastructure ecosystem.' Modi further noted that such investments 'will strengthen India's position as a global hub for cloud computing and AI, while generating employment opportunities, supporting local supply chains and accelerating innovation-led growth. It is clear that the future of the world's digital economy is increasingly being shaped in India!'

Why This Investment Matters

Demand for cloud infrastructure, AI compute, and large-scale data storage is rising sharply across Indian industries — from banking and e-commerce to healthcare and government services. A 5 GW data centre footprint would dramatically expand available capacity at a time when domestic supply remains constrained relative to projected demand. This comes amid a broader wave of global hyperscaler and infrastructure investments in India, including commitments from Google, Microsoft, and Amazon Web Services in recent years, signalling that India is increasingly viewed as a tier-one destination for next-generation digital infrastructure.

Broader Impact: Jobs, Supply Chains, and Innovation

Beyond raw compute capacity, the investment is expected to generate direct and indirect employment, support local hardware and construction supply chains, and catalyse ancillary growth in the Indian technology ecosystem. According to Prime Minister Modi, the growing flow of such investments reflects rising global confidence in India's technology policy environment, talent base, and regulatory stability. Industry observers have echoed this view, noting that large-scale data centre projects typically anchor broader clusters of technology activity in host regions.

What Comes Next

The announcement is described as a plan at this stage; specific timelines, phasing, and state-level land allocations have not yet been publicly detailed. Execution of a project of this scale will depend on grid connectivity, land acquisition, and water availability for cooling — infrastructure dependencies that have historically paced data centre rollouts in India. Stakeholders will watch for formal agreements and regulatory clearances in the months ahead.