India's AI Data Centre Power Demand Attracts Global Investment

Global technology companies are investing billions of dollars into India's artificial‑intelligence data‑centre market. A thematic report by Shriram Mutual Fund emphasizes that the AI spending cycle in India is fundamentally a power‑demand story, stating, "For India, the AI capex cycle is first and foremost a power‑demand story." The report notes that a 1‑gigawatt AI‑grade data centre can cost between $20 billion and $50 billion and consume electricity equivalent to about 750,000 homes. While India has limited direct exposure to frontier AI model development, it can profit from supplying the physical infrastructure – generation, transmission, switchgear, transformers, cabling and cooling – needed for global AI expansion. Hyperscale firms are projected to spend $5.3 trillion on AI‑related capital expenditures from 2025‑2030, creating a sizeable market for Indian power‑equipment manufacturers and grid developers.