India's leading telecom companies are investing more than ₹1 lakh crore, or over $12 billion, into building advanced, AI-ready data centers and cloud infrastructure. This massive investment, planned over the next two to three years, marks a significant shift in strategy for telcos. They are moving away from focusing solely on network expansion to developing robust digital infrastructure crucial for artificial intelligence. The goal is to substantially increase enterprise revenue, aiming for it to reach 30% to 40% of their total earnings by fiscal year 2027. ## Telcos Shift Focus to Digital Services This strategic pivot comes as major telecom operators complete their 5G network rollout. The new focus is on providing a wider range of digital services beyond just connectivity. These services include cybersecurity, cloud computing, Internet of Things platforms, and advanced AI-powered solutions. Industry experts say this shift will transform India's digital economy. Sh^[1][2][3]ilpa Malaiya Singhai, Managing Director at Alvarez & Marsal India, highlighted the scale of this commitment. She noted that Indian telcos have pledged over ₹1 lakh crore for AI-focused data centers within the next few years. Singhai added that India's two main telecom operators are making strategic investments in gigawatt-scale AI data centers. These projects could add a massive 4 to 5 gigawatts to the country's existing digital infrastructure. Adity^[1]a Khaitan, a partner at Deloitte India, estimates that 20% to 30% of investment budgets for fiscal year 2027 will go towards building AI-ready data centers, edge infrastructure, and cloud functions. This share will be even higher for the top two telcos, who have largely finished their 5G capital expenditure cycles. ### ^[1][2]Airtel's Major Data Center Expansion Bharti Airtel is a key player in this investment wave. The company plans to invest approximately ₹5,000 crore to expand its Nxtra data center capacity. This expansion will boost Nxtra's capacity from 240 megawatts to 400 megawatts. Airtel'^[1][2][4]s data center arm, Nxtra Data, aims to become a leader in India's data center market, potentially doubling its current capacity over the next three to four years. In a s^[4]ignificant move, Airtel also partnered with Google and AdaniConneX to establish a $15 billion AI hub in Visakhapatnam, Andhra Pradesh. This project, set to unfold between 2026 and 2030, will feature a gigawatt-scale data center designed to support demanding AI workloads in India. As part^[5][6][7] of this five-year agreement, Airtel will build a new cable landing station in Visakhapatnam. This station will host new international undersea cables, connecting to Google's global network. Airtel will also provide intra-city and inter-city fiber networks to support the data center and enhance India's digital backbone. Google ^[5][7]Cloud CEO Thomas Kurian stated that this $15 billion AI hub is Google's largest investment in India to date. He said it aligns with the Indian government's "Viksit Bharat 2047" vision, which aims to accelerate the expansion of AI-driven services across the country. ### Re^[5]liance Jio's Ambitious AI Infrastructure Reliance Jio is also making substantial investments in AI infrastructure. The company plans a massive 3 gigawatt data center in Jamnagar, Gujarat. Relianc^[2][3]e Industries, led by Mukesh Ambani, is reportedly investing between $12 billion and $30 billion to build a 1 gigawatt AI-ready data center capacity in Jamnagar. This pr^[6][8]oject involves partnerships with global AI leader NVIDIA to integrate its powerful Blackwell AI processors. Relian^[8]ce has formed a new subsidiary, Reliance Enterprise Intelligence Ltd (REIL), to drive this initiative. REIL, a joint venture with Meta (70% Reliance, 30% Meta), will integrate Meta's Llama models with Reliance's network. This collaboration aims to deliver scalable AI services for Indian enterprises. Beyond ^[6]Jamnagar, a joint venture involving Reliance Industries, Canadian multinational Brookfield, and U.S. real estate investment firm Digital Realty will invest $11 billion to develop another 1 gigawatt AI data center in Visakhapatnam, Andhra Pradesh. This five-year investment highlights Andhra Pradesh's emergence as a key location for advanced digital infrastructure. ### Vo^[9]dafone Idea Leverages AI for Security and 5G While Bharti Airtel and Reliance Jio lead the large-scale data center investments, Vodafone Idea (Vi) is also actively integrating AI into its operations. Vi uses artificial intelligence to enhance fraud protection and optimize its 5G network expansion. The co^[10][11]mpany's AI-driven "Vi Protect" platform offers advanced security against fraud for both individual customers and businesses. This system monitors calls, SMS messages, and URLs in real time, using a continuously updated database of emerging threats. Vi's AI-powered systems also enable voice spam detection, network defense, and quick responses to security incidents, adapting dynamically to evolving fraud patterns. Vodafon^[10][11]e Idea has expanded its 5G coverage to 29 cities and plans further rollout, using AI-powered self-organizing network technologies for efficient and optimized expansion. The company's investment plans include thousands of new sites and partnerships to improve connectivity for both 5G and 4G users nationwide. ### In^[10][11][12]dia's Growing Data Center Market The broader data center market in India is experiencing robust growth, fueled by the increasing adoption of AI and digital transformation efforts. The Indian data center colocation market is projected to grow at a Compound Annual Growth Rate (CAGR) of 24.68% from 2023 to 2029. Overall^[13] investment commitments in the data center industry are expected to exceed $100 billion by 2027. India'^[13]s data center capacity is anticipated to expand by 500 megawatts over the next four years, primarily driven by the demands of AI workloads. The tot^[13]al installed power of India's data centers, currently over 1 gigawatt, is forecast to reach more than 2 gigawatts by 2026 and surpass 8 gigawatts by 2030. This growth is expected to generate over $30 billion in capital expenditures. The AI-^[14]optimized data center market in India, valued at an estimated $1.19 billion in 2025, is projected to reach $3.10 billion by 2030, growing at a CAGR of 21.08%. The In^[15]dian government supports this digital transformation through initiatives like the India AI mission, which aims to foster innovation and responsible AI deployment. The government has approved ₹10,732 crore, or approximately $1.24 billion, for AI infrastructure development. Additiona^[13]lly, the Union Cabinet has greenlit a ₹1 lakh crore Research Development and Innovation (RDI) Scheme to incentivize private sector investments in high-tech research. This compre^[16]hensive push positions India as a significant global player in the digital economy, ready to support diverse AI applications across sectors like healthcare, finance, logistics, and e-commerce. AI could ad^[13]d an estimated $500 billion to India's Gross Domestic Product by 2025. META_TITLE^[8]: Indian Telcos Invest ₹1 Lakh Crore in AI-Ready Data Centers

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