Big Tech companies are making huge investments in India, fueled by the country’s vast resources for data centers, a tech-savvy workforce, and a booming market. Recently, Microsoft and Amazon announced plans to invest over $50 billion in cloud and AI infrastructure in India. Intel is joining the effort by planning to manufacture chips locally to meet the rising demand for PCs and AI technologies.
Even though India is not leading the global AI race like the U.S. and China, it has skills in information technology that could help develop AI applications for businesses. S. Krishnan, from India’s Ministry of Electronics and Information Technology, mentions that having a model is just a starting point. Companies need the right tools and talent to utilize AI effectively.
Interest in AI in India is growing. A recent Stanford University report places India among the top four countries for AI development, alongside the U.S., China, and the U.K. GitHub also ranks India highly, noting that it contributes to 24% of global projects.
Microsoft’s $17.5 billion investment over four years aims to enhance AI capabilities and workforce readiness. This move gives Microsoft a competitive edge in creating data centers equipped to handle the demands of AI workloads. Amazon is planning to invest an additional $35 billion, building on its previous investments in the country.
Leading tech firms like OpenAI and Google have also made their AI tools accessible to millions in India, with Google announcing a further investment of $15 billion to boost data center capacity in southern India. Experts like Tarun Pathak from Counterpoint Research highlight that India’s combination of a vast digital user base and a skilled IT workforce positions it as a central hub for AI development, not merely a user market.
When it comes to data centers, India has its advantages. Unlike mature markets like Japan and Australia, India has plenty of space for large developments. Additionally, lower power costs and growing renewable energy sources make it an attractive place for data centers. Demand from expanding e-commerce and new data storage regulations also support the growth of this sector.
According to Deepika Giri from International Data Corporation, India is emerging as a crucial market for AI investments in Asia-Pacific. She notes that a gap in suitable computing infrastructure presents a significant opportunity. Major tech companies are looking to set up data centers in key IT hubs like Bangalore, Hyderabad, and Pune as they adapt to the needs of businesses and users in India.
For further details, you can check out the Stanford AI Index.
Source link
Asia Economy,Technology,Breaking News: Technology,business news
