AirTrunk commits $30B to build 5GW of data center capacity in India

On Friday, Blackstone-backed data center operator AirTrunk announced it will invest $30 billion in India by 2030. The company plans to develop 5 gigawatts of new data center capacity in the South Asian nation. This commitment marks a significant expansion for the operator, which entered the Indian market earlier this year through the acquisition of Lumina CloudInfra.

The investment aligns with broader market trends across the country. According to research firm Bernstein, data center capacity in India is projected to rise to as much as 8GW by 2030, up from about 1.5GW today. To encourage this growth, the government in New Delhi offered foreign cloud providers tax exemptions through 2047 on services sold overseas, provided those workloads are run from Indian data centers.

AirTrunk has already begun laying the groundwork for its expansion in western Indian regions. Devendra Fadnavis, the Chief Minister of Maharashtra state, confirmed that the state government exchanged a letter of intent for land allotment at the Raigad Pen Growth Center. At this site, AirTrunk is planning a 3GW data center that involves an investment of about ₹2 trillion (around $21 billion). The company did not respond to questions regarding whether this proposed Raigad project will account for the majority of its planned 5GW capacity, or if it plans to make additional developments elsewhere in India. Currently, AirTrunk has an existing development pipeline of about 600MW across Mumbai, Chennai, and Hyderabad.

AirTrunk joins a growing list of domestic and international technology companies expanding their infrastructure footprint in India. Other companies investing in the country’s cloud and data center capacity include:

• Amazon, Google, Microsoft, OpenAI, and Uber, which have announced infrastructure investments.
• Indian conglomerates and technology firms Reliance Industries, Adani Group, and TCS, which have outlined plans to expand their own data center capacity.

Following a meeting with AirTrunk CEO Robin Khuda, Prime Minister Narendra Modi stated that “the planned investment would help strengthen India’s position as a global hub for cloud computing and artificial intelligence.” However, the rapid expansion of these facilities presents resource challenges, particularly regarding power. Professional services firm Deloitte estimates that data center build-outs in the Asia Pacific region could require tens of terawatt-hours of additional electricity by the end of the decade.

Why it matters

AirTrunk’s $30 billion commitment to build 5GW of data center capacity in India highlights the country’s growing appeal as a destination for AI infrastructure and cloud computing.