India Could Attract $200 Billion in Data Centre Investments Over Next 7–8 Years
India could attract around $200 billion in data centre investments over the next seven to eight years, Commerce and Industry Minister Piyush Goyal said on October 26, 2026. The projection reflects growing global interest in India’s digital infrastructure, supported by demand for cloud computing and artificial intelligence (AI).
Speaking at the India-Netherlands Business Forum in The Hague, Goyal said India’s access to low-cost clean energy and its efforts to reduce regulatory hurdles were helping attract international businesses. He also called on Dutch companies to expand their investments and partnerships in India.
Clean Energy and Easier Regulations to Drive Investment
Goyal said businesses were increasingly looking for markets with simpler procedures and lower compliance requirements. India’s efforts to improve the ease of doing business, alongside the availability of clean energy at competitive costs, could support the expansion of data centre infrastructure.
Data centres are essential to the storage and processing of digital information. Demand is rising as businesses adopt cloud services, AI applications and other data-intensive technologies.
The investment outlook will also depend on reliable power supply, suitable land, faster approvals and the availability of supporting infrastructure. In September, the government highlighted these requirements during a meeting with data centre industry representatives, where it discussed measures to accelerate projects and improve investment conditions.
AI and Cloud Computing Create New Opportunities
India’s growing digital economy is creating opportunities for data centre operators, cloud service providers and technology companies. According to the Ministry of Commerce and Industry, hyperscalers accounted for more than 80% of data centre absorption in the first half of 2026.
The government has identified data centres, semiconductors and artificial intelligence as important sectors for India’s future economic growth. It is also working to address infrastructure and regulatory issues that could affect the pace of investment.
Goyal Projects 7.5% Economic Growth
Goyal also expressed confidence in India’s economic outlook, projecting growth of 7.5% for the year. He highlighted the India-European Union free trade agreement as another opportunity to expand investment, manufacturing and business partnerships.
Inviting Dutch businesses to work more closely with Indian companies, the minister called for greater cooperation in manufacturing, investment and innovation. The proposed data centre investments could strengthen India’s digital infrastructure and support its ambition to become a major global technology hub.
