India's AI Mission

India is stepping up its efforts to become a global leader in Artificial Intelligence (AI), not just in terms of AI development and applications, but also in creating the infrastructure necessary to support this transformation. With the rapid growth of AI technology and its increasing reliance on vast amounts of data, one of the country’s key strategic moves is the establishment of data centres. These data centres will not only support AI development but also cater to the needs of tech companies that rely on high computational power for their operations.

Launched by the Indian government, the IndiaAI Mission represents a transformative initiative aimed at building a robust and inclusive AI ecosystem in India. Approved by the Union Cabinet on March 7, 2024, the mission seeks to align the country’s AI development with its broader economic and social development goals.

At the core of this mission is the establishment of AI-related infrastructure, including AI Compute Capacity, AI Innovation Centres, AI Datasets Platforms, and AI Application Development Initiatives. Importantly, the IndiaAI Compute initiative stands out as a critical pillar, aiming to provide Compute as a Service. This service will address the growing need for dedicated computing resources, particularly Graphics Processing Units (GPUs), which are essential for training AI models.

India’s target for AI compute infrastructure is an ambitious 10,000 GPUs, and the mission has already successfully empanelled 14,517 GPUs as part of this effort. This focus on AI compute resources is vital for India’s ambition to drive AI-driven solutions across sectors such as healthcare, agriculture, manufacturing, and governance.

As AI and data-driven technologies continue to evolve, the demand for high-performance computing and storage is growing exponentially. Data centres, which house the critical IT infrastructure required to store and process vast amounts of data, are central to this need. The Indian government is keenly aware of this requirement and has outlined various initiatives to promote the establishment of these centres across the country.

Currently, India’s data centre capacity stands at 854 MW (Mega Watts) of IT load, and it is expected to grow to 1,645 MW by 2026. This growth is driven by both private sector investments and public sector initiatives aimed at meeting the increasing demand for digital services.

The Indian government is actively supporting the development of data centres through various regulatory and policy initiatives. These efforts aim to ensure that the country’s digital infrastructure is robust, secure, and capable of supporting emerging technologies like AI. The initiatives include:

1. Digital Personal Data Protection Act (DPDP), 2023:
This legislation sets the groundwork for regulating the processing and sharing of digital personal data in India. While it does not mandate data localisation outright, it empowers the government to restrict data transfers to specific countries. Additionally, the Act emphasizes data minimization and the need for reasonable security safeguards, which will ensure that personal data remains secure, whether stored within India or transferred abroad.
2. The Reserve Bank of India’s Data Storage Directives: The RBI has issued strict directives for the storage of payment system data within India. All Payment System Operators (PSOs) must ensure that data related to payment systems is stored exclusively in India, reflecting the critical need for secure and localised data management in India’s financial ecosystem.
3. Insurance Regulatory and Development Authority of India (IRDAI) Guidelines: The IRDAI mandates that insurance companies in India maintain critical business and policy data in data centres located in India. This regulation ensures that sensitive financial data remains within the country, safeguarding it against foreign jurisdictional concerns.

With India’s data growth projected to increase, ensuring safe and trusted AI is a central concern. The government has implemented multiple layers of security to address the risks associated with sensitive personal data. These include provisions under the IT Act, 2000, which holds organizations accountable for failing to protect personal data. Furthermore, Section 43A of the IT Act allows individuals to seek compensation if their data is mishandled due to negligence.

India’s regulatory framework around data protection and cybersecurity is designed to balance the country’s rapid digital transformation with the need for security. The new DPDP Act further strengthens this by creating a Data Protection Board to oversee compliance and ensure grievances are addressed.

As AI continues to reshape the global technology landscape, India is well-positioned to emerge as a leader in AI innovation and infrastructure. The establishment of data centres across the country will be a key enabler of this vision. By fostering a reliable, secure, and scalable infrastructure, the IndiaAI Mission is paving the way for a more AI-driven future that aligns with India’s economic and social objectives.

The government’s regulatory frameworks, such as the DPDP Act and RBI’s data storage directives, are designed to ensure that Indian citizens’ data remains secure and protected while fostering a conducive environment for the growth of AI technologies. With continued investment in AI compute resources, data centres, and regulatory oversight, India’s journey towards becoming a global AI powerhouse is firmly on track.

India’s vision of becoming an AI leader is intricately linked with its development of data centres that support the growing demand for computational power and data storage. By aligning AI infrastructure, innovation, and security with national development goals, the IndiaAI Mission is not just about fostering technological advancements but ensuring that they are secure, inclusive, and aligned with India’s future.

As the world moves deeper into the digital age, India’s investments in AI and data centre infrastructure are setting the stage for a new era of technological leadership. Through smart policies and strategic initiatives, India is building a future where AI and data are at the heart of its economic growth and technological prowess.

(Based on the information tabled in the upper house on 4tht April 2025 by the government in response to my question No.3902 on the subject.)

Parimal Nathwani Rajya Sabha Member