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India to procure 10,000 graphics processing units by 2025 for improved computational capabilities.

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In Short:

India is ramping up its computational capabilities by acquiring 10,000 GPUs in the next 18 months. The country ranks high in data generation and AI projects globally. India leads Asia Pacific countries in data center capacity, with significant growth expected in the coming years. The shift towards a developed market economy and digital revolution are driving huge data growth, creating investment opportunities in the data center industry.

India to Procure 10,000 GPUs for Enhancing Computational Capabilities

India, known for being a major generator of digital data, is all set to bolster its computational capabilities through the procurement of 10,000 graphics processing units (GPUs) in the next 18 months, as revealed by the country’s G20 Sherpa, Amitabh Kant.

India’s Digital Data Landscape

As stated by Amitabh Kant in a recent post, India, with the world’s highest population, contributes to 20% of the global data. Additionally, the country ranks second globally in terms of GitHub AI projects, with a share of 19% of all AI projects worldwide.

“This highlights India’s active engagement in AI development on a global scale, providing significant opportunities for transforming sectors such as education, healthcare, and overall human development,” mentioned Kant in his post.

India’s Data Center Capacity

In a report by CBRE South Asia Pvt. Ltd, India emerged on top among major Asia Pacific countries with a data center capacity of 950 MW, excluding China. Surpassing countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, the report also forecasts India to witness the highest capacity addition of 850 MW between 2024-2026 in the region.

The rapidly growing data center industry in India is expected to double its capacity in the next three years, reaching 2 GW by 2026, as per insights shared by CareEdge Ratings in a recent report. This growth is estimated to require an investment of Rs 50,000 crore over the next three years.

Digital Transformation and Economic Expansion

India’s transition from a developing to a developed market economy is greatly fueled by the ongoing digital revolution, leading to a surge in data production. Key drivers of this digital shift include e-commerce, online payments, streaming services, and adoption of advanced technologies like 5G, IoT, and AI.

Furthermore, the shift towards Edge data centers is expected to rise to meet the escalating demand from tier II and tier III cities, ensuring low latency and enhanced connectivity.

As the need for data localization grows, investments in data centers are projected to rise, backed by cost-saving incentives offered by various states to attract investments in this burgeoning sector.

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