Japanese IT firm, Indian cloud company partner to build AI hub

Japanese IT firm NTT DATA has partnered with AI cloud company Neysa Networks and the Telangana government to build a 400 MW AI data centre cluster in India.

The 10,500 crore rupee (US$1.23 billion) project was announced during Telangana Chief Minister Revanth Reddy’s visit to Tokyo.

The data centre will house 25,000 GPUs to support advanced AI supercomputing infrastructure.

It will run on a mix of grid and renewable energy, using technologies like liquid immersion to meet environmental standards.

The initiative also includes collaboration with local academic institutions to boost Telangana’s digital public infrastructure.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ India’s uneven AI investment landscape reveals strategic gaps despite state-level ambitions

Telangana’s massive AI data center investment comes amid significant disparities in India’s AI funding compared to global leaders.

India’s total AI investment between 2019-2023 was approximately $16.15 billion, placing it fourth globally but far behind the US ($328.5 billion) and China ($132.67 billion)1.

The National AI Mission’s budget of $1.3 billion pales in comparison to the US’s $109 billion investment, highlighting a critical funding gap that could limit India’s global competitiveness2.

Multiple Indian states are competing to become AI hubs, with Karnataka signing an MoU with the World Economic Forum, Andhra Pradesh developing Amaravati as an AI-centric city, and Tamil Nadu partnering with Google3.

Telangana’s approach stands out through systematic ecosystem building, including a dedicated AI Strategy & Implementation Roadmap launched in September 2024 and the development of a Telangana Data Exchange platform to facilitate AI innovation4.

The state’s commitment to both infrastructure investment and talent development through academic partnerships suggests a more comprehensive strategy compared to states focusing primarily on real estate development.

2️⃣ AI data centers represent an emerging environmental and energy challenge

The scale of Telangana’s planned 400 MW data center reflects the extraordinary power demands of AI infrastructure, with projections indicating data centers globally could consume 35 gigawatts annually by 20305.