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Generative AI, data centres to define India’s tech industries in 2025
- India's technology industry is expected to see generative artificial intelligence (AI) and related data applications from the establishment of data centres as key building blocks that will define client orders, financial growth and technical innovation in 2025.
- Industry stakeholders are gearing up for a surge in demand from Big Tech firms, data centre and software services companies amid expectations of easing inflation concerns in the West, and the Indian government's boost to domestic research and development (R&D) expenditure in the coming year.
- The Adani group is expected to invest $4 billion to establish a net data centre capacity of 1.5GW within the next two years, driven by the influx of AI in enterprises. Bharti Enterprises subsidiary Nxtra is also investing $600 million to double its net data centre capacity to 400MW by 2026.
- Accenture disclosed $1.2 billion in net new generative AI deals with businesses worldwide, comprising 6.4% of total new business during the company's Q1FY25 period, which runs from September to November.
- India's IT services stalwarts, led by Tata Consultancy Services (TCS), Infosys and HCL Technologies are expected to keep up with Accenture's pace of executing generative AI applications with clients.
- Custom AI is emerging as a transformative force in 2025, allowing organizations to design AI solutions tailored to their specific needs. Businesses across industries can significantly be redefined with the right combination of data and associated computing power.
- The boom in data centre demand will be unavoidable in India as a result. As enterprises ramp up AI consumption, this demand will only rise without any concerns of slowdown or saturation at least in the near-term.
- The key will be in how generative AI grows in the coming year. By 2025 there are no external factors that can stop data centres and generative AI from defining India's tech industries.
- US behemoths of Google, Meta, Microsoft and OpenAI can dictate AI's direction in the coming year. For data centres, figuring out the energy consumption conundrum will be a key challenge.
- Despite this, all of them are certain that unlike the promise of 5G or satellite internet, there are no external factors that can stop 2025 from being the year for data centres and generative AI to define India's tech industries.
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