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India boosts AI data centers, from server builds to cloud power
India ran about 1,500 MW of data center capacity at the start of 2025 and is targeting more than 2,000 MW by the end of 2026, with a tax incentive aimed at foreign cloud firms through 2047.
India is accelerating its artificial intelligence rollout, but the work goes beyond chips to the physical buildout behind AI clusters, including servers, high-speed fibre connectivity, power, and large-scale cooling infrastructure, LiveMint Markets said.
The outlet cited starting data center capacity of roughly 1,500 megawatts (MW) in early 2025, projecting it to surpass 2,000 MW by the end of 2026, while expecting the cloud segment to grow four to five times by 2030.
LiveMint Markets also pointed to budget support, including a tax holiday out to 2047 for foreign cloud firms that build in India, adding that the demand spans multiple layers of the stack, from Netweb’s AI server systems to E2E Networks’ cloud and GPU rental model.
For Netweb, LiveMint Markets said revenue jumped to ₹8.2 billion in the quarter ended June 2026, up from ₹3 billion a year earlier, and net profit rose 180% to ₹850 million, with the AI portion driving most of the growth and an order book of ₹25 billion as of June.