India is facing a significant infrastructure gap in its artificial intelligence (AI) development, according to a Deloitte report. The country requires a substantial amount of data center real estate and power to meet the growing demand driven by AI. Despite generating 20% of global data, India accounts for only 3% of the world's data center capacity.
The country's data center growth is promising, but it may fall short due to high energy intensity and dependence on non-renewable energy sources. Moreover, the US AI Diffusion Framework limits India's import of Nvidia H100-class GPUs, which could hinder progress in AI development.
India also faces a shortage of skilled professionals and dedicated R&D institutions to support its AI workforce, which is projected to reach 1.35 million by 2027. To address these challenges, the government has launched initiatives like the IndiaAI Mission, which aims to establish a comprehensive AI ecosystem through strategic programs and partnerships.
The government plans to invest in creating AI compute infrastructure and promote AI education, training, and funding for startups. With these efforts, India can bridge its AI infrastructure gap and unlock the full potential of AI-driven growth and innovation.
