India is seeing a significant increase in private-sector investments in artificial intelligence  (AI), creating a noticeable gap between public and private funding that is shaping the  country’s technological direction. The government’s IndiaAI Mission aims to enhance  computing power, boost research, and support the development of AI models, but its financial  plans are quickly being outpaced by the large investments from global tech companies. This  growing difference is not just about money; it also affects who will own, manage, and control  the important AI and cloud infrastructure that will be vital for India’s digital future. 

The rise in private investment is fueled by India’s unique strengths. The country generates  nearly one-fifth of the world’s data, has one of the largest young populations, and is rapidly  adopting digital technologies across various devices and cloud services. These factors make  India a key market for training, deploying, and scaling advanced AI systems, prompting  international companies to invest long-term. 

As a result, foreign firms are quickly establishing large-scale infrastructure and gaining  control over essential platforms that local businesses and public institutions will depend on.  This shift may affect the development of India’s AI ecosystem, raising concerns that market  forces, rather than public interests, could dictate access, affordability, and standards. For  India to achieve widespread AI adoption and maintain technological independence, it will  need ongoing public investment in open computing, foundational research, and responsible  data management. 

Major Investment Announcements 

In December 2025, two leading global technology companies announced substantial multi year investments in India, totaling over $50 billion, further solidifying the country’s role as a  strategic technology hub.

On December 9, 2025, Amazon announced plans to invest more than $35 billion in India by  2030, building on nearly $40 billion already invested in previous years. This announcement  was made during the Amazon Smbhav Summit in New Delhi. 

On the same day, Microsoft revealed a $17.5 billion investment—its largest in Asia— covering the period from 2026 to 2029. This investment will focus on expanding AI and  cloud infrastructure while enhancing operational capabilities in India. Both announcements  underscore India’s growing significance in the global technology sector. 

Investment Focus Areas 

Amazon’s investment will be directed towards several key areas, especially AI-driven  digitization, boosting exports, and creating jobs nationwide. The company also plans to  increase its investments in fulfilment centres, logistics, data centres, and digital payment  systems. Amazon aims to raise total exports to nearly $80 billion by 2030 and expand AI  tools for millions of small businesses across India. 

Microsoft’s strategy emphasizes improving cloud and AI capabilities, developing solutions  that comply with India’s data governance policies, and significantly enhancing skills training.  The company will expand its hyperscale data centre presence, including a new major region  in Hyderabad expected to be operational by 2026. Additionally, Microsoft plans to train 20  million Indians in AI skills by 2030 and integrate advanced AI into public platforms like  eShram and the National Career Service. 

AI and Data-Centre Boom 

Deloitte predicts that India’s data centre market could reach $100 billion by 2027. Japanese  company NTT DATA has also announced a $1.5 billion investment to increase data centre  capacity in the country. 

At the same time, leading AI companies are forming strategic partnerships to broaden access  to premium AI tools, with telecom giants like Reliance Jio and Bharti Airtel providing free  access to certain AI models and subscriptions for Indian users. 

Public Investment Context 

The IndiaAI Mission is the government’s main AI initiative, with a total budget of ₹10,371  crore over five years. However, actual spending has been limited in the early years. For  2025–26, the government allocated ₹2,000 crore, along with specific funds for expanding  computing capabilities and developing indigenous models. When compared to the recent  multi-billion-dollar investments from foreign technology firms, the difference in scale is  clear.