Australian data centre company AirTrunk will invest nearly $30 billion in India to build massive new data centre capacity, in what is being described as one of the country’s largest-ever digital infrastructure commitments. Welcoming the announcement, Prime Minister Narendra Modi said the investment would significantly strengthen India’s artificial intelligence and cloud infrastructure ecosystem. The proposed expansion, estimated at nearly ₹3 lakh crore, is expected to accelerate India’s emergence as a major digital and AI hub in the Asia-Pacific region.

A Landmark Push in India’s Digital Infrastructure Expansion

AirTrunk’s proposed investment involves the development of nearly 5 gigawatts of data centre capacity across multiple Indian states and Union Territories through a long-term expansion programme. The initiative is backed by major global investors including Blackstone and Canada Pension Plan Investment Board.

The scale of the investment makes it one of the most ambitious technology infrastructure projects currently planned in India. Industry experts believe such large-scale data centre capacity will become increasingly critical as demand rises for cloud computing, AI processing, digital storage and high-speed internet services.

Prime Minister Modi stated that the project aligns closely with India’s broader digital transformation goals and the government’s push to strengthen AI-ready infrastructure for future economic growth.

AirTrunk’s Strategic Entry into India

AirTrunk formally entered the Indian market earlier in 2026 through its acquisition of Lumina CloudInfra. Through that acquisition, the company secured a development pipeline of around 600 megawatts across key technology and business hubs including Mumbai, Chennai and Hyderabad.

The company has since identified India as one of its most significant long-term global investment destinations. Rapid digitalisation, increasing cloud adoption and rising AI-driven computing demand have made India an attractive market for hyperscale infrastructure operators.

AirTrunk Founder and CEO Robin Khuda highlighted three major reasons behind the company’s aggressive India expansion strategy — strong government support for AI and digital transformation, access to renewable energy resources and India’s large pool of skilled technology professionals.

Why Data Centres Matter in The AI Economy

The announcement underscores how digital infrastructure is becoming as strategically important as traditional infrastructure such as roads, ports and power networks. Data centres serve as the backbone of modern AI systems, cloud platforms, financial services, e-commerce networks and digital governance systems.

As artificial intelligence applications rapidly expand worldwide, countries with stronger computing and storage ecosystems are expected to attract higher-value technology investments and innovation ecosystems. Analysts say India’s growing digital consumer base and enterprise cloud demand make it one of the fastest-growing data centre markets globally.

The proposed 5 GW expansion is also expected to create thousands of jobs during construction and operational phases while boosting local manufacturing, energy systems and technology service industries.

India Emerging as Regional AI Hub

Following the announcement, industry observers noted that AirTrunk’s investment could trigger additional commitments from global cloud service providers and AI companies seeking long-term infrastructure partnerships in India.

The project also complements India’s broader ambitions to position itself as a leading AI and semiconductor ecosystem in the region, supported by policy reforms and rising private investment.

A Defining Step in India’s Digital Transformation

AirTrunk’s massive investment signals growing global confidence in India’s digital economy and long-term technological potential. Beyond data centres, the project represents a larger strategic shift toward building sovereign digital capacity capable of supporting future AI-driven growth. If executed successfully, the initiative could strengthen India’s position as one of the world’s most important digital infrastructure and innovation destinations in the coming decade.

(With agency inputs)