Blitz Bureau
NEW DELHI: After the application layer, the model layer and the compute layer, comes the data centres and network infrastructure layer in the IndiaAI Stack.
This layer forms the home and highways of AI. Data centres are where AI systems are stored and operated, while networks like the internet, broadband, and 5G move data between users, computers, and AI models. Together, they ensure AI works reliably, quickly, and reaches users wherever they are. Without strong networks and data centres, AI applications would not function or scale effectively.
Data centre and network infrastructure in India
· A nationwide optical fibre network supports high-speed data movement for cloud and AI services.
· 5G services have been rolled out in all states / Union territories across the country and are available in 99.9 per cent of the districts in the country with a population coverage of 85 per cent.
· India accounts for about 3 per cent of global data centre capacity with an installed data centre capacity of approximately 960 mw. Further, capacity is projected to grow sharply to 9.2 gw by 2030, driven by rising AI and cloud workloads.
· Mumbai-Navi Mumbai is the largest data centre hub, accounting for over 25 per cent of India’s total capacity. Other key data centre hubs include Bengaluru, Hyderabad, Chennai, Delhi NCR, Pune, and Kolkata.
· Global tech giants are investing in India to accelerate AI and digital infrastructure, marking a major boost for the nation’s technological landscape. Key commitments include Microsoft’s Rs 1.5 lakh crore for data centres and AI training, Amazon’s Rs 2.9 lakh crore for cloud infrastructure and AI-driven digitisation by 2030, and Google’s Rs 1.25 lakh crore for a 1 gw AI hub in Vizag.
The data centres and network infrastructure layer provides the foundational backbone that enables AI systems to operate at scale and in real time. By strengthening connectivity and expanding domestic data centre capacity, India is ensuring that AI services remain reliable, responsive, and widely accessible. This integrated approach supports secure, scalable AI deployment across sectors while anchoring digital capabilities firmly within the national ecosystem.
General trend in AI infrastructure development
The infrastructure layer is the backbone of AI deployment, with major technology companies investing heavily in high-capacity data centres and high-speed networks. India is strengthening this foundation through wide-scale development of digital connectivity and domestic data centre infrastructure.
Investments by both global and Indian technology companies are helping ensure that AI models, data, and innovation ecosystems are hosted within the country. By improving connectivity, expanding data centre capacity, and keeping digital infrastructure within national jurisdiction, India is creating a resilient and scalable environment for AI adoption across sectors.
Energy layer
This layer keeps the entire AI stack running. AI data centres consume large amounts of electricity because powerful computers are needed to train and operate AI systems. Even as technology becomes more efficient, AI still requires a steady and reliable power supply. Clean and affordable energy is therefore essential to support the sustainable growth of AI infrastructure.
Affordable, secure and clean energy in India
· India met a record peak power demand of 242.49 gw in FY 2025–26, with national energy shortages reduced to just 0.03 per cent, ensuring uninterrupted electricity for AI data centres, and high-performance computing facilities.
· Total installed power capacity reached to 509.7 gw, providing the scale required to support energy-intensive AI workloads (as of November 2025).
· Share of non-fossil fuel sources stands at 256.09 gw – over 51 per cent of the total installed capacity, aligning AI infrastructure growth with sustainability and lowering the carbon footprint of data centres.
· India plans to achieve 100 gw of nuclear capacity by 2047, 57 gw of pumped storage projects by 2031–32 and 43,220 mwh of battery energy storage systems. It will further enhance grid stability and support AI data centres operating alongside variable renewable energy.
The energy layer underpins the reliability and sustainability of the entire AI ecosystem. By ensuring adequate, affordable, and increasingly clean power supply, India is enabling energy-intensive AI infrastructure to scale without compromising grid stability.
This transition towards a resilient and low-carbon energy mix supports long-term AI growth while aligning technological advancement with national climate and sustainability goals.
General trend in AI and energy demand
The rapid expansion of AI and data centres is driving a substantial increase in electricity demand globally, with global data centre power consumption projected to more than double by 2030 — reaching around 945 twh annually as AI-driven workloads grow rapidly.
In India, this trend comes as the power sector undergoes historic transformation. The country’s total installed electricity capacity has surpassed 500 gw, with non-fossil fuel sources accounting for over 51per cent of that capacity — achieving a major clean energy milestone ahead of the 2030 target.
This expansion of clean, affordable, and secure energy strengthens the power system’s ability to support energy-intensive, continuously operating AI and data-centre workloads, aligning AI infrastructure growth with sustainable and resilient energy supply.
Building a robust AI stack is both a technological priority and a social commitment for India. By strengthening every layer, including applications, AI models, compute, digital infrastructure, and energy, India is enabling the democratisation of AI and ensuring that its benefits reach citizens at population scale.
The focus on real-world use cases across agriculture, healthcare, education, justice, and disaster management demonstrates how AI can directly improve service delivery, productivity, and public welfare while remaining inclusive, sovereign, and aligned with national priorities.
Through affordable access to compute, indigenous model development, secure data infrastructure, and sustainable energy systems, India is creating an AI ecosystem that is scalable, resilient, and future-ready.
This integrated approach ensures that AI innovation is not constrained by cost, infrastructure, or energy availability, while supporting long-term self-reliance. Anchored in the vision of AI for humanity, India’s AI stack positions technology as a tool for inclusive growth, social equity, and well-being, advancing welfare for all and happiness for all in the digital era.
