India's data centers to reach 10.5 GW by fiscal 2031
Big changes are coming to India's digital world: data center capacity is set to jump from 1.8 gigawatts to 10.5 gigawatts by fiscal 2031, thanks mostly to the rise of AI and stricter data localization rules.
Morgan Stanley says AI alone could account for much of this surge, as more apps and services need faster, local processing.
Over $20B to boost India's power
To keep up with demand, more than $20 billion will go into boosting power infrastructure, especially renewables.
Global tech giants are eyeing India despite challenges like power reliability and reliance on imported hardware.
By fiscal 2030, Morgan Stanley expects most new investments here will go toward cleaner energy, data centers, and defense tech, with Morgan Stanley expecting India's investment rate to touch 37.5% of GDP in FY2030.