India’s data center race intensifies with AirTrunk’s USD 21 bn pledge

Australian data center major AirTrunk has secured approval for a land allotment in Maharashtra to build a 3 GW data center with an investment of USD 21 bn, as per an announcement by the state’s Chief Minister Devendra Fadnavis on X.

The nitty-gritty: Backed by US investment major Blackstone, AirTrunk operates data centers across Hong Kong, Japan, Malaysia, and Singapore. The proposed plan captures growing demand for AI, cloud computing, and digital infrastructure in India — with Mumbai already accounting for half of India's data center capacity and priming itself as a regional data hub — through tax incentives and policy support for foreign operators.

Why it matters: US tech majors are expected to commit more than USD 630 bn to India this year for data and digital infrastructure projects. Reliance Industries and Adani Group have committed some USD 210 bn to AI and data infrastructure earlier this year. Together, this capital race to build out AI infrastructure is underpinning India’s next phase of digital growth. AirTrunk, too, is moving to lock up land and power allocations before domestic conglomerates begin to monopolize hyperscale cloud demand in the country.

Domestic players want a slice of the AI pie

New Delhi-based real estate developer Anant Raj is set to invest INR 250 bn (USD 2.6 bn) to expand data center and cloud services operations in Haryana under an agreement with the state government, Reuters reports. The developer is seeking to diversify beyond real estate and is considering a demerger of its digital infrastructure business.

The big picture: India's data-center market, valued at about USD 5.6 bn in 2025, is projected to more than double to USD 13.1 bn by 2034, as demand for cloud computing, AI, and data localization drives a new wave of infrastructure investment.

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