Why Big Tech Is Rapidly Investing Billions In India.

Big Tech companies are investing substantial amounts of money in India because the country has the right resources to build data centers, a large pool of tech talent, millions of digital users, and a rapidly growing market.
In less than 24 hours, Microsoft and Amazon announced investments of over $50 billion to build India’s cloud and AI infrastructure. Around the same time, Intel announced plans to manufacture chips in India to support the country’s growing demand for PCs and AI.

India may not yet have its own big AI model like the U.S. or China, but it has strong IT skills and the talent needed to build and use AI applications for companies. This makes India a major opportunity for global tech giants.

According to S. Krishnan from the Ministry of Electronics and IT, companies need more than just AI models—they need applications and skilled people to use them. India has both.
India is ranked among the top four countries globally in AI growth. GitHub says India already contributes 24% of all global coding projects. This makes India strong in building AI applications that can generate major revenue.

This week:
Microsoft announced a $17.5 billion investment to expand AI infrastructure and train workers.
Amazon announced it will invest over $35 billion, in addition to the $40 billion already invested.

Google, OpenAI, and Perplexity have been offering their AI tools for free to millions of Indians, and Google also plans to invest $15 billion to build a new AI hub.
Experts say India has a huge digital population, fast-growing demand for cloud and AI services, and a very large talent pool—making it not just a market, but a global engineering hub for AI.

Why India is perfect for data centers:

Plenty of land compared to places like Singapore.

Lower power costs.

Growing renewable energy supply.

Rising e-commerce usage.

Possible new rules for storing data within India.

All of this makes India one of the most attractive data center markets in the world.
Tech companies are now building data centers near India’s major IT cities like Bangalore, Hyderabad, and Pune, instead of just Mumbai and Chennai. They want to create AI and cloud infrastructure in India not only for Indian users, but also for the world.