Artificial intelligence is no longer only a race to build smarter software. It is increasingly becoming a competition to develop the physical infrastructure needed to power AI models, from data centres and computing capacity to energy systems.
Amid growing discussions around AI infrastructure in India, Paytm founder Vijay Shekhar Sharma has argued that the country should embrace the expansion of data centres rather than resist the technology.
His comments came amid debate surrounding Google’s planned AI data centre investments in India, where concerns around land, electricity use and environmental impact have also gained attention.
Sharma’s remarks highlight a larger question facing countries worldwide: how to build the infrastructure needed for AI growth while addressing the resource challenges that come with it.
India’s AI Infrastructure Push
India has been attracting major investments from global technology companies seeking to expand their artificial intelligence and cloud infrastructure capabilities.
Google has announced plans to establish a major AI hub in Andhra Pradesh, involving investment in data centre capacity and related digital infrastructure. The company’s plans are part of a broader effort by global technology firms to expand computing capacity as demand for artificial intelligence services rises.
Beyond Google, Australian data centre operator AirTrunk has also announced a significant investment commitment in India. The company plans to invest more than US$30 billion by 2030 to develop over 5 GW of data centre capacity across the country.
Backed by Blackstone and the Canada Pension Plan Investment Board (CPPIB), AirTrunk said the investment will support rising demand for artificial intelligence, cloud computing and digital services.
Why Data Centres Matter For AI
Data centres are becoming a critical foundation of the AI economy. Unlike traditional software applications that can operate with limited computing requirements, advanced AI models require large-scale computing power for training, deployment and everyday operations.
As businesses increasingly adopt generative AI tools, demand for high-performance computing infrastructure is expected to grow. Countries investing in data centres are attempting to position themselves as destinations for technology companies, cloud providers and AI developers.
For India, expanding digital infrastructure is also linked to its ambition of becoming a major player in the global AI ecosystem. A large technology workforce, growing digital economy and increasing enterprise demand for cloud services have made the country an attractive market for infrastructure investors.
Balancing Growth And Sustainability
The expansion of AI infrastructure also raises important questions about sustainability. Data centres require significant electricity, cooling systems and land, making energy efficiency and resource management key considerations.
Globally, technology companies are exploring ways to reduce the environmental impact of data centres through renewable energy use, improved cooling technologies and more efficient computing systems.
For India, the challenge will be to ensure that AI infrastructure growth is supported by reliable power systems while balancing environmental priorities and local concerns.
Road Ahead For AI In India
The debate around data centres reflects a broader shift in how countries compete in the AI era. Success will depend not only on developing advanced AI applications but also on building the infrastructure that allows those technologies to operate at scale.
As companies like Google and AirTrunk expand their presence in India, the country’s AI ambitions will increasingly depend on how effectively it can combine innovation, investment and sustainable development.
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