India’s Data Centre Boom Sparks Power, Cyber and Operational Risk Concerns: Howden Report

Report Title - Howden’s Insuring the Data Centre Supercycle Report

• Power consumed by data centres has risen 68-fold since 2016, while expansion at live sites is increasing construction and business interruption risk
• More than 90% of India's data centres have redundant capacity, yet non-damage outages and interconnected tenants continue to create insurance gaps

India's data centre expansion is creating concentrated risks across power, construction, water, cyber and operations, according to new research from Howden, the global insurance broker. The findings call for an integrated approach from site selection and design through construction and operation to build resilience and secure insurance.

Power infrastructure as the biggest risk factor

Howden’s analysis identifies power infrastructure as the biggest risk factor. The challenge is not just generation capacity but reliable grid connectivity, substation capacity and redundancy at each location.

Between 2016 and 2025, the power consumed by data centres built in India grew 68-fold, at a 60% CAGR as per the recent S&P data. The demand is forecast to reach 57 TWh by 2030. Increasingly, hyperscale campuses are looking to on-site, behind-the-meter generation to ensure a reliable supply. This changes the underwriting risk profile and increases the importance of location-specific power resilience assessments. Reliable, efficient supply is a commercial priority and energy accounts for about 65% of operating costs. Power resilience is especially crucial in these markets, with Maharashtra, Telangana and Karnataka accounting for approximately 70% of the capacity.

Construction at live sites raises business interruption risk

India added 7 million square feet of data centre space in 2025, with construction volumes growing at a 37% CAGR since 2016, the S&P data indicates. The average size of a new facility rose from 59,000 square feet in 2016 to 276,000 square feet in 2025, concentrating greater asset values at individual sites.

Between 2026 and 2030, planned expansion at existing data centres is equivalent to 78% of their current footprint. Construction alongside sensitive, high-value operations increases the risk of physical damage and business interruption, particularly during testing and commissioning. Construction and operational risks therefore need to be assessed within a single programme.

Redundancy does not remove outage and cyber risk

More than 90% of Indian data centres have redundancy built into their UPS, generator and cooling systems. However, outages still occur, often because of system failures that cause no physical damage and may not trigger traditional insurance. The market is developing solutions such as parametric cover, particularly for retail and wholesale providers. These providers account for 86% of India's data centres and carry uptime commitments to multiple customers.

These facilities also face the greatest systemic cyber exposure. A single compromise can affect the systems and workloads of hundreds of thousands of tenant organisations, while interconnected tenants increase the risk of lateral movement. Cyber risk therefore needs to be considered alongside property, power and operational exposures.

Water and Environment risks need early attention

Most data centres are located in urban centres where water availability is already under pressure. Cooling a 1 MW facility can require around 25.5 million litres of water annually. Water use, renewable power sourcing, energy efficiency, power usage effectiveness (PUE) and carbon footprint should form part of early site planning and risk assessment, rather than being addressed after construction.

Amit Agarwal, CEO, Howden India, said: "India's data centre story is not only about adding capacity. Power reliability, construction at operating sites, cyber concentration and water stress can all affect uptime. These risks need to be identified early and managed together, with insurance designed around the exposures that remain. This will help operators protect their assets and avoid gaps in cover as the sector expands."

Alongside risk transfer, the report highlights the need to build water and environment considerations into data centre planning from the start. This includes renewable power sourcing, energy efficiency and PUE, water availability and consumption, and the carbon footprint of large campuses. It also points to gaps in existing policy and insurance frameworks: water use is not adequately addressed, non-damage outages may fall outside traditional cover, and construction, power, cyber and operational risks are often treated separately. Closing these gaps will require stronger site-level risk assessment and more integrated insurance programmes.

Source: Howden analysis of NOAA and 451 Research by S&P Global

About Howden

Howden is a global insurance intermediary group with employee ownership at its heart. Founded in 1994, it provides insurance broking, reinsurance broking and underwriting services and solutions to clients ranging from individuals to the largest multinational companies. The group operates in 57 countries across Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia, and New Zealand, employing 24,000 people and handling $51bn of premium on behalf of clients.

Website: www.howdengroupholdings.com

Vertiv Announces Agreement to Acquire UtilityInnovation Group to Accelerate Time to Power for AI Data Centers

• ~$1.45 billion acquisition expected to expand Vertiv’s addressable opportunity in power-constrained data centers
• Adds microgrid controls, onsite generation orchestration, microgrid-specific switchgear and behind-the-meter power architecture to Vertiv's portfolio
• Extends Vertiv's power and cooling portfolio from grid interconnect to chip, independent of any single generation technology or supplier
• UIG's proven team and proprietary technology expected to help customers accelerate time to power through grid-connected or grid-independent architectures

Vertiv Holdings Co. (NYSE: VRT) ("Vertiv"), a global leader in critical digital infrastructure, announced its wholly-owned subsidiary, Vertiv Corporation, has entered into an agreement and plan of merger to acquire Utility Innovation Holdings, Inc., which operates as UtilityInnovation Group ("UIG"), a leader in microgrid solutions, advanced power controls and behind-the-meter power architecture design for data centers, for approximately $1.45 billion in cash at closing, with additional consideration of up to $1.15 billion in cash based on achieving certain earnings before interest, taxes, depreciation and amortization ("EBITDA") targets over 12- and 24-month periods.

At the approximately $1.45 billion purchase price, the acquisition represents approximately 13x expected UIG 2027 EBITDA. The EBITDA multiple is anticipated to be significantly lower if the full earnout is paid. Vertiv expects the acquisition to be accretive to adjusted earnings per share in the first year following completion. Strategically, the acquisition extends Vertiv upstream to the grid interconnect, adding microgrid controls, onsite generation and energy storage orchestration, and behind-the-meter power architecture. These capabilities are expected to help data center operators secure power faster as grid constraints increasingly limit AI infrastructure deployment.

As power availability becomes a more critical factor in data center development, architecture decisions are moving earlier in the planning process. Microgrid systems can coordinate onsite generation and energy storage, reduce reliance on utility power and support the grid when needed. This is expanding the importance of power architecture at the earliest stages of site development, when decisions can have significant implications for downstream infrastructure.

"For AI data center operators, competitive advantage increasingly depends on how quickly they can move from site selection to first token," said Gio Albertazzi, Chief Executive Officer, Vertiv. "Vertiv has the most complete power and cooling portfolio in the industry. With UIG, we anticipate extending that portfolio upstream to the utility interconnect and onsite power sources, creating a coordinated architecture from source to chip without tying customers to a single generation technology or supplier."

Albertazzi continued: "Together, we anticipate being better positioned to support grid-connected sites, bridge-to-grid deployments and islanded sites supplied by onsite generation, while reducing complexity from site planning through rack-level deployment. This broader capability can help customers accelerate time to power and, ultimately, time to first token."

UIG Founder and CEO Sidney Hinton added: "UIG was founded to solve increasingly complex power challenges for data center operators through flexible, technology-agnostic architectures. Vertiv's global scale, critical infrastructure portfolio and service capabilities make it a strong strategic fit for what we have built. We believe this combination can expand the reach of UIG's microgrid controls and power architecture expertise and create greater value for customers as power becomes an increasingly critical constraint on data center growth."

Expanding Vertiv's Onsite Power Capabilities

UIG's expertise and technologies complement Vertiv's existing offerings:

• Experience: Design and delivery of microgrid systems for AI data center operators across the United States and Europe, supported by extensive utility relationships and experience with complex, large-scale deployments. UIG's designs are generation-agnostic, allowing architectures to be built around the technologies a site can permit, fuel and finance.
• Expertise: Behind-the-meter power architecture design that engages customers at the earliest planning stages, before equipment is selected. This enables Vertiv to help define the power blueprint that shapes downstream infrastructure decisions, supported by pre-validated reference designs for grid-connected, bridge-to-grid and islanded sites.
• Technology: Proprietary controls platform and pre-engineered microgrid switchgear that orchestrate multiple power sources in real time and coordinate them with the critical power train.

Today, Vertiv brings deep systems and controls expertise across the critical power train, supported by an end-to-end power and cooling portfolio and global service network. Combined with UIG, Vertiv expects to help customers design and deploy integrated power architectures that improve speed, resiliency, efficiency, and flexibility.

Expected customer and operator benefits include:

• Faster access to power with less dependence on utility interconnection timelines
• Ability to scale site capacity beyond what the grid alone can provide
• A single accountable relationship from grid interconnect through rack-level infrastructure

Together, these capabilities are expected to give customers greater flexibility in how they source, manage and scale power as data center requirements evolve.

About UIG

Founded in 2020, UIG is headquartered in Raleigh, North Carolina, with European headquarters in Dublin, Ireland, and manufacturing operations in North Carolina and New Jersey. The company designs and delivers power systems that support real-time load and frequency balancing across behind-the-meter systems and utility-connected energy resources, helping address the power demands of AI data center workloads. Its solutions include proprietary controls software, customized microgrid switchgear and energy storage.

The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the fourth quarter of 2026.

J.P. Morgan Securities LLC is acting as financial advisor to Vertiv, and Buchanan Ingersoll & Rooney PC is serving as legal counsel. Morgan Stanley & Co. LLC is acting as financial advisor to UIG, and Davis Polk & Wardwell LLP is serving as legal counsel.

For more information on Vertiv's leading portfolio of power and thermal management, infrastructure solutions, IT systems, and services for critical digital applications, visit Vertiv.com.

About Vertiv

Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com. 

Global Tech Giants Back India’s $200B Data Centre Future

Commerce Minister Piyush Goyal has pitched India as a “trusted destination” for global data centres, highlighting investment commitments worth nearly $200 billion from hyperscalers like Google, Microsoft, Amazon, and Digital Connexion. He made this pitch during his Japan visit, inviting Japanese firms to partner in AI, semiconductors, and digital infrastructure.

The minister invited Japanese companies to partner with India in data centres, AI and semiconductors, highlighting around $200 billion in hyperscaler investment commitments.

Key Highlights of Goyal’s Pitch

Piyush Goyal in the Fireside Chat with Nikkei Asia in Tokyo on the India-Japan Next Generation Economic Partnership.

• Investment Commitments: Around $200 billion pledged by global hyperscalers for India’s data centre ecosystem.
• Major Announcements (Oct–Dec 2025):
  • Google: $15 billion
  • Microsoft: $17.5 billion
  • Amazon: $35 billion
  • Digital Connexion: $11 billion
• Policy Incentives: Indian government has proposed a tax holiday for data centres until 2047.
• Strategic Partnership: Goyal met Japanese Economy Minister Akazawa Ryosei, outlining four pillars of cooperation — trade, technology, investment, and tourism.
• Sectoral Focus: Collaboration in AI, semiconductors, and digital ecosystems, with India’s demand estimated at $150 billion.

Why India is Emerging as a Data Centre Hub

• Trusted Destination: India is positioning itself as a reliable partner amid global supply chain realignments.
• Policy Push: Incentives like tax holidays, renewable energy integration, and subsea cable projects.
• Talent Pool: India offers a large base of engineers, AI specialists, and IT professionals.
• Geopolitical Advantage: Seen as a safe harbour for digital infrastructure compared to other Asian hubs.

Comparison of Hyperscaler Investments in India

Company	Investment Size	Focus Area	Timeline
Google	$15B	AI & cloud infra (Vizag hub)	By 2028
Microsoft	$17.5B	AI-ready data centres	By 2029
Amazon	$35B	Hyperscale cloud infra	By 2030
Digital Connexion	$11B	AI infra & subsea cables	By 2029

Risks & Challenges

• Water & Energy Security: Large-scale AI data centres demand sustainable cooling and renewable energy.
• Execution Risk: Scaling commitments to operational capacity within tight timelines.
• Global Competition: India must compete with hubs in Singapore, UAE, and the U.S. for capital.

Starcloud Raises $250M to Scale AI Beyond Earth

Starcloud has raised $250 million in a Series A extension, boosting its valuation to $2.3 billion as it accelerates plans to build orbital data centers for AI workloads. The funding underscores growing investor confidence in space-based computing, with Nvidia and Cisco joining as strategic backers.

Starcloud aims to build orbital data centers leveraging continuous solar power and radiative cooling for large-scale AI compute.

Founded in 2024 2024 (originally as Lumen Orbit, later rebranded to Starcloud), Starcloud is a U.S.-based startup pioneering orbital data centers. Its founders are Philip Johnston (CEO, ex-McKinsey), Ezra Feilden (CTO, ex-Airbus Defence and Space), and Adi Oltean (Chief Engineer, ex-SpaceX and Microsoft Azure). The company has raised $450M to date, with investors including Benchmark, EQT, Manhattan West, NVIDIA, Cisco Investments, and others. 

Funding and Valuation

• Amount Raised: $250 million (Series A extension)
• Valuation: $2.3 billion post-money
• Total Capital Raised: $450 million since founding in 2024
• Lead Investor: Manhattan West
• Other Backers: Benchmark, EQT, Soma, NFX, 776, Nvidia, Cisco Investments, Cedar Capital, Goanna Capital, Standard Capital

Orbital Data Center Vision

• Core Idea: Move AI processing into orbit, reducing latency by analyzing data closer to where it is collected
• Advantages Over Earth-Based Centers:
  • No need for complex cooling systems
  • Continuous solar power without weather disruptions
  • Lower latency for space applications
• Target Scale: Constellation of 88,000 satellites delivering 20 gigawatts of compute capacity

Technology and Partnerships

• Nvidia Collaboration:
  • First NVIDIA H100 GPU flown to orbit in 2025
  • Development of Space-1 Vera Rubin Module, designed for radiation-heavy orbital environments
  • Future satellites expected to deliver 25x more compute than current H100 GPUs
• Cisco Role: Providing networking and AI infrastructure expertise for orbital systems
• Upcoming Hardware:
  • Starcloud-2 (2027): AI chips, storage, and backup modules
  • Starcloud-3: 200 kW satellites with advanced cooling and heat dissipation
  • Starcloud-4 (future): Cylindrical orbital data center with a 2.5-square-mile solar array

Manufacturing Expansion

• Facility: 100,000-square-foot plant in Woodinville, Washington
• Purpose: Mass production of Starcloud-3 spacecraft

Risks and Challenges

• High Capital Needs: Orbital infrastructure requires billions in long-term investment
• Launch Constraints: Reliance on SpaceX’s Starship as Falcon 9 phases out by 2028
• Regulatory Hurdles: FCC approval sought for 88,000 satellites
• Competition: SpaceX’s “Starmind” project envisions up to a million orbital data center satellites

Market Context

• SpaceX IPO Impact: Renewed investor enthusiasm for space-tech startups
• Global Trend: Orbital data centers seen as a solution to terrestrial bottlenecks in land, power, and water usage. 

Google’s $15bn Vizag Data Hub Faces Water Shortages and Wildlife Court Battles

Google’s $15 billion AI data centre hub in Visakhapatnam is facing mounting protests and legal challenges over water scarcity and environmental risks, with activists warning that the project could worsen the city’s already strained supply of 410 million litres per day against a demand of 480 million litres. Courts are now reviewing petitions about its impact on reservoirs and the nearby Kambalakonda Wildlife Sanctuary.

Data centres consume huge water volumes for server cooling, raising fears of worsening water shortages.

As of August 6–7, 2026, the Vizag AI data centre project is under full construction but faces intensifying protests, legal scrutiny, and environmental concerns, with Andhra Pradesh High Court set to hear key cases on August 24.

Spread across three sites — Taluvada (266.6 acres), Adivivaram (160 acres), Rambilli-Achyutapuram (174.8 acres), the data centre site is 860m from Kambalakonda Wildlife Sanctuary, home to leopards and pangolins.

Water Challenges

• Current supply vs demand: Vizag receives 410 million litres/day, but needs 480 million litres/day, leading to routine rationing for 2.5 million residents.
• Cooling needs: Hyperscale data centres consume vast amounts of water to cool servers, raising fears of worsening shortages.
• Activist concerns: Groups like Jal Biradari argue the project will strain nearby reservoirs, while slogans such as “We cannot drink DATA” have become rallying cries.

Environmental & Wildlife Risks

• Proximity to sanctuary: The site is just 860 metres from Kambalakonda Wildlife Sanctuary, home to leopards and pangolins.
• Noise & construction impact: Heavy machinery and terracing of hillsides could disrupt wildlife habitats.
• Legal cases: Multiple petitions filed in Andhra Pradesh High Court and India’s environmental court demand stricter review or halts.

Legal & Political Context

• Government stance: Andhra Pradesh, led by an ally of PM Modi, insists the project complies with regulations and denies fast-tracking allegations.
• Court hearings: The High Court will next hear public interest litigation on August 24, 2026.
• Global parallels: Similar protests against data centres have erupted worldwide, including 142 protests across 42 U.S. states in July 2026.

Comparison of Key Concerns

Issue	Details	Impact
Water scarcity	410 MLD supply vs 480 MLD demand	Risk of worsening rationing
Wildlife sanctuary	860m from Kambalakonda	Habitat disruption for leopards, pangolins
Legal challenges	Cases in High Court & environmental court	Possible delays, stricter oversight
Public protests	“We cannot drink DATA” marches	Growing local resistance

🚨 Risks & Outlook

• Water security: Without desalination or alternative cooling, Vizag’s residents may face deeper rationing.
• Wildlife impact: Sanctuary proximity raises long-term ecological risks.
• Execution risk: Legal delays could push back Google’s planned September 2028 operations.

In July 2026, 142 protests across 42 U.S. states targeted data centres over water and energy use. Google calls Vizag its largest AI hub outside the U.S., anchoring subsea cable gateways for India’s digital sovereignty. Despite hurdles, Google positions Vizag as a global AI hub, critical for India’s digital sovereignty.

Vertiv and IIT Madras Expand Data Center Skills Program to Maharashtra With RTMSSU Partnership

Vertiv's skills development funding program expands into Maharashtra to equip engineering students in data center operations and digital infrastructure management

Vertiv (NYSE: VRT), a global leader in critical digital infrastructure, supports the expansion of IIT Madras Pravartak Technologies Foundation's data center skilling initiative into Maharashtra through its corporate social responsibility (CSR) program. As part of this initiative, IIT Madras Pravartak Technologies Foundation also signed a Memorandum of Understanding (MoU) with the Ratan Tata Maharashtra State Skills University (RTMSSU) in the presence of Maharashtra Governor, Jishnu Dev Varma, during the "Start-up Frontier 1.0" exhibition and conference held at the Y B Chavan Auditorium in Mumbai last July 10, 2026.
Vertiv has partnered with IIT Mumbai, IIT Madras Pravartak Technologies Foundation, and IIT (BHU) to help engineering students build practical skills in data center operations and AI-ready infrastructure. Through hands-on training and industry exposure, these initiatives prepare students for careers in the digital infrastructure industry.
Leveraging its deep expertise in power, cooling, and IT infrastructure, Vertiv will provide free skill development training to 1,500 engineering students in data center operations and digital infrastructure management in 2026. This builds on the collaboration launched by Vertiv and IIT Madras Pravartak Technologies Foundation in 2025 to strengthen India's pipeline of skilled talent for the rapidly growing digital infrastructure sector. RTMSSU will leverage its network of pre-incubation centers across 60 colleges in Maharashtra to extend the program's reach. Students will receive certified online training along with internship and mentorship opportunities designed to prepare them for careers in data center operations and digital infrastructure management.
Speaking about the initiative, Dr. A S Prasad, vice president product management and engineering, Vertiv India, said,
"India's digital infrastructure growth is creating increasing demand for professionals with specialized skills in data center operations and management. At Vertiv, we believe that building this talent pipeline requires close collaboration between the academia and industry. Through this initiative, we provide engineering students with practical knowledge, industry exposure and the skills needed to contribute to India's evolving digital infrastructure ecosystem. We are pleased to support IIT Madras Pravartak Technologies Foundation and Ratan Tata Maharashtra State Skills University in expanding this program to Maharashtra and enabling more students to prepare for careers in this high-growth sector."
Dr. M.J. Shankar Raman, chief executive officer, IIT Madras Pravartak Technologies Foundation, added,
"As artificial intelligence continues to redefine industries and economies, data centers have become central to this digital transformation. This rapid growth has created an urgent need for skilled specialists who can operate and maintain these essential facilities. Through this program, we are dedicated to building a workforce that supports India's AI ambitions with the technical talent required to sustain them."
For more information about Vertiv and career opportunities, visit Vertiv.com.

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About Vertiv

Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers’ vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com

Forward-looking statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act. These statements are only a prediction. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Readers are referred to Vertiv’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of these and other important risk factors concerning Vertiv and its operations. Those risk factors could cause actual results to differ materially from historical performance. Vertiv is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

About IIT Madras

Indian Institute of Technology Madras (IITM) was established in 1959 by the Government of India as an 'Institute of National Importance.' The activities of the Institute in various fields of Science and Technology are carried out in 18 academic departments and several advanced interdisciplinary research academic centres. The Institute offers undergraduate and postgraduate programmes leading to B.Tech., M.Sc., M.B.A., M.Tech., M.S., and Ph.D. degrees in a variety of specializations. IITM is a residential institute with more than 650 faculty and 10,000 students, with students from 18 countries enrolled. IITM fosters an active entrepreneurial culture with strong curricular support and through the IITM Incubation Cell. In 2023, IIT Madras became the first IIT to establish an international campus, in Zanzibar, Tanzania, called 'IIT Madras Zanzibar.'

IIT Madras Pravartak Technologies Foundation

IITM Pravartak Technologies Foundation is a Section 8 company housing the Technology Innovation Hub on Sensors, Networking, Actuators, and Control Systems (SNACS). It is funded by the Department of Science and Technology, Government of India, under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS), and is hosted as a Technology Innovation Hub (TIH) by IIT Madras. The NM-ICPS is a comprehensive Mission aimed at complete convergence with all stakeholders by establishing strong linkages between academia, industry, Government, and International Organizations.

Ratan Tata Maharashtra State Skills University (RTMSSU)

Ratan Tata Maharashtra State Skills University (RTMSSU) is a state skills university set up by the Government of Maharashtra to expand vocational and technical skilling, entrepreneurship, and innovation capacity across the state, including through pre-incubation centers established across 60 affiliated colleges.

For media inquiries, please contact:

Himanshu Gonsola
Adfactors PR
E: Himanshu.gonsola@adfactorspr.com
MEDIA CONTACT FOR IIT MADRAS
IIT Madras Media Cell — Email: media.iitmadras@imail.iitm.ac.in / Landline: 044 2257 9785
MEDIA CONTACT FOR RTMSSU
Email – contact@mssu.ac.in | Phone: 8655946646/47

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Vertiv News Release

Kirloskar Oil Engines Secures 192 MW Order to Power HyperNext’s AI‑Ready Hyperscale Data Centers

Kirloskar Oil Engines Limited (KOEL), one of India's leading manufacturers of power generation solutions, today announced a significant order from HyperNext, a next-generation digital infrastructure company focused on delivering hyperscale-ready, AI-enabled data center solutions. The order comprises 192 MW, 96 units of KOEL's 2500 kVA Optiprime™ Dual Core power systems, representing one of the largest deployments of high-capacity power systems for hyperscale data centres in India.

(L - R) Akhil Saraf, Global Head, New Energy & CEO Kirloskar Solar; Madan Patil, President - Global Power Generation; Rahul Sahai C

The deployment will support HyperNext's mission to build resilient, scalable, and energy-efficient digital infrastructure capable of meeting the rapidly growing demands of cloud computing, artificial intelligence, and mission-critical enterprise workloads.

HyperNext has emerged as an innovative force in the digital infrastructure sector, developing future-ready data center ecosystems designed to support AI workloads, hyperscale cloud deployments, and enterprise digital transformation initiatives. The company's focus on sustainability, operational excellence, and advanced technology architecture aligns closely with KOEL's commitment to delivering reliable and efficient power solutions.

Harsh Macwann, Group CEO, HyperNext, said, "As we continue to expand our digital infrastructure footprint, reliability and performance remain central to our design philosophy. KOEL's Optiprime™ solution offers the scale, engineering sophistication, and proven operational performance required for our mission-critical environments. Being India’s first data centre with an 800VDC power architecture, this partnership reflects our shared commitment to enabling the next generation of digital infrastructure while maintaining the highest standards of operational resilience."

The collaboration highlights the convergence of two organizations focused on powering India's digital future—HyperNext through advanced data center infrastructure and KOEL through innovative power generation technologies.

The Optiprime™ platform combines multiple high-performance cores into a single integrated power system, delivering industry-leading power density, operational efficiency, and reliability. Designed specifically for hyperscale and mission-critical environments, these Uptime™ certified, DCCP (Data Centre Continuous Power) power systems platform enables data centre operators to optimize footprint utilization while ensuring uninterrupted power availability.

"This order reflects the growing confidence that digital infrastructure leaders place in KOEL's engineering capabilities and our ability to deliver reliable, high-performance power solutions at scale," said Madan Patil, President- Global Powergen Business, Kirloskar Oil Engines Limited. "As AI and cloud adoption accelerate globally, data centers require robust and resilient backup power systems that can support ever-increasing energy demands. Our Optiprime™ platform has been developed precisely to address these challenges, delivering exceptional performance, reliability, and operational efficiency for Hyperscale data centres."

With decades of manufacturing excellence and a growing portfolio of solutions tailored for mission-critical applications, KOEL continues to strengthen its position as a trusted partner for hyperscale data centers, cloud service providers, colocation operators, and enterprise customers across India and global markets.

As digital transformation, AI adoption, and data-intensive applications continue to drive unprecedented growth in infrastructure demand, partnerships such as this demonstrate the critical role of reliable power systems in enabling the digital economy.

Schneider Electric and Foxconn Unite to Build AI Factories

Schneider Electric, a global energy technology leader, today announced a strategic collaboration with Hon Hai Technology Group (Foxconn), the world’s largest electronics manufacturer, to help define and scale the next generation of AI data centers.

As AI adoption surges, the demands on digital infrastructure are being fundamentally reshaped. This collaboration brings together Foxconn’s unmatched expertise in advanced compute platforms, AI rack integration, and global manufacturing with Schneider Electric’s leadership in power systems, cooling, and energy management. Together, the companies aim to deliver integrated, ready-to-deploy solutions that enable customers to build and operate AI infrastructure with greater speed, efficiency, and predictability across regions. Production will begin later this year.

“At the pace AI is evolving, the industry requires a new model for how infrastructure is designed, built, and delivered,” said Young Liu, Chairman of Foxconn. “By combining Foxconn’s strength in AI systems and global manufacturing with Schneider Electric’s deep expertise in power and energy, we are creating a path for customers to deploy AI capacity at scale—faster, smarter, and more sustainably.”

"AI demand continues to accelerate, and as compute scales to keep pace, the energy behind it becomes a fundamental enabler,” said Olivier Blum, CEO of Schneider Electric. “If we want to scale AI responsibly, these systems must be connected. This is where energy intelligence becomes essential. At Schneider Electric, we are advancing energy tech to build the most efficient and sustainable AI factories by bringing integrated power, cooling, and digital capabilities into AI data centers. Working with Foxconn, we are helping customers build capacity with real speed, resilience, and efficiency, as energy technology partners to an industry that is firmly entering the era of intelligence."

Through this collaboration, Foxconn and Schneider Electric will co-develop next-generation reference architectures for AI data centers. The partnership will also explore innovations in closed-loop energy optimization, modular power and cooling skids, and standardized design frameworks, creating repeatable, high-performance blueprints for AI factories worldwide. By aligning manufacturing excellence with energy intelligence, the two companies are setting the foundation for a new class of AI infrastructure that is scalable by design, efficient by default, and ready to meet the accelerating demands of the AI era. 

About Foxconn

Hon Hai Technology Group (Foxconn) (TWSE:2317) is the world’s largest electronics manufacturer and leading technology solutions provider, ranking 28th in Fortune Global 500. In 2025, revenue totaled TWD8.1 trillion (approx. USD260 billion). The Group’s market share in electronics manufacturing services (EMS) exceeds 40% and covers four major product segments: smart consumer electronics; cloud and networking; computing; and components and other. Operating over 240 campuses across 24 countries, Foxconn is one of the world’s largest employers with approx. 900,000 employees during peak manufacturing season. We are committed to sustainability in the manufacturing process and serving as a best-practice model for global enterprises. The Group is guided by its 3+3+3 strategy, actively investing in industries of electric vehicles, digital health, and robotics; in technologies of artificial intelligence, semiconductors and next-generation communications; in intelligent platforms of Smart Manufacturing, Smart EV and Smart City. Foxconn is dedicated to becoming a comprehensive, world-class enterprise, with AI as its core driving force. Learn more at www.foxconn.com/en-us

About Schneider Electric

Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory.

With 160,000 employees and one million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.

www.se.com

India Bets on Nuclear Power to Fuel AI Data Centers

India is turning to nuclear energy to meet the surging power demand from AI-driven data centers, with a new Nuclear Energy Mission targeting 100 GW capacity by 2047. This move aims to ensure energy security, reduce fossil fuel dependence, and sustain hyperscale growth.

Why Nuclear Energy for Data Centers?

• AI workloads: A single AI server rack consumes 5–6 times more power than a conventional rack.
• Data center growth: India hosts <5% of global data centers despite accounting for 20% of global data consumption.
• Energy demand forecast: Capacity is expected to rise from <2 GW in 2025 to 8–15 GW by 2030.
• Policy push: The Nuclear Energy Mission aligns with India’s net-zero 2070 target and aims for 100 GW nuclear power by 2047.

Key Players Driving the Shift

• Reliance Industries: ₹1.6 lakh crore investment in a 1.5 GW AI cluster in Visakhapatnam.
• Google: $15B investment in a 1 GW hyperscale hub.
• Adani Group: $100B pan-India AI-ready infrastructure plan.
• Tata Group: Expanding with global partners like AWS and OpenAI.

Comparison: Energy Options for Data Centers

Energy Source	Reliability	Scalability	Carbon Impact	Suitability for AI
Nuclear	High	Very High	Low	Strong (stable baseload)
Solar	Medium (daylight dependent)	High	Very Low	Limited (needs storage)
Wind	Medium (seasonal)	Medium	Very Low	Moderate
Coal	High	High	Very High	Strong but unsustainable

Strategic Implications

• Energy Security: Nuclear reduces reliance on imported fossil fuels.
• Geopolitical Stability: Provides a resilient backbone for AI infrastructure amid global supply chain risks.
• Sustainability: Complements solar and wind to meet net-zero 2070 goals.
• Global Positioning: Positions India as a potential AI infrastructure hub, competing with Singapore, UAE, and US.

Small Modular Reactors (SMRs)

In late 2022, Union minister Dr Jitendra Singh has unveiled that India is taking steps for development of Small Modular Reactors (SMR), with up to 300 MW capacity to fulfill its commitment to Clean Energy transition.

SMRs are increasingly seen as a strategic solution to power India’s fast‑growing data center sector, offering clean, reliable baseload electricity that can sustain AI workloads and hyperscale operations. Experts highlight their role in ensuring energy security, resilience, and uninterrupted supply for mission‑critical infrastructure.

SMRs can directly power hyperscale clusters in Visakhapatnam, Hyderabad, and Mumbai. Unlike solar or wind, SMRs provide continuous electricity, crucial for AI clusters that cannot tolerate downtime.

Risks & Challenges of Nuclear Power in Data Centre 

• Execution risk: Scaling nuclear capacity from current levels to 100 GW by 2047 is ambitious.
• Cooling & water demand: AI data centers could drive water usage to 1,068 billion liters annually by 2028.
• Regulatory hurdles: Streamlined approvals across states are critical.
• Public perception: Nuclear projects often face opposition due to safety concerns.

Australia’s AirTrunk to Invest $30B in India, One of the Largest Commitments to S. Asia’s Digital Infra Sector

Blackstone-backed hyperscale operator AirTrunk has announced a landmark plan to invest $30 billion (₹3 lakh crore) in India by 2030, building over 5 GW of data centre capacity across multiple states to support AI and cloud infrastructure growth. This marks one of the largest digital infrastructure commitments in India’s history and to the South Asian nation’s digital infrastructure sector.

AirTrunk is a Sydney-based hyperscale data centre operator, founded in 2015 by Robin Khuda, and acquired by Blackstone and CPP Investments in 2024. It has rapidly expanded across Asia-Pacific and the Middle East, positioning itself as a leading provider of large-scale, sustainable cloud infrastructure.

In April this year, AirTrunk acquired Lumina CloudInfra to gain a 600 MW pipeline in Mumbai, Chennai, and Hyderabad. AirTrunk is one of the largest hyperscale operators in the Asia-Pacific & Middle East region, serving global cloud providers and enterprises.

Key Details of AirTrunk’s India Investment

• Scale of Investment: $30 billion (₹3 lakh crore) by 2030
• Capacity Target: More than 5 GW of hyperscale data centres
• Backers: Supported by Blackstone and CPPIB
• Entry into India: Acquired Lumina CloudInfra in April 2026 (600 MW pipeline)
• Strategic Focus: Expansion across states, renewable energy, subsea cable access
• Government Support: Welcomed by PM Modi

Why India?

• AI & Cloud Demand: India emerging as global hub
• Policy Frameworks: IndiaAI Mission (₹10,000 crore), Semiconductor Mission (₹76,000 crore)
• Talent & Energy: Skilled workforce and renewable energy
• Geopolitical Advantage: Safe harbour for investments

Economic & Strategic Impact

• Job Creation: Tens of thousands expected
• Supply Chain Localization: Boost to domestic suppliers
• Global Positioning: Strengthens India’s AI role
• Regional Competition: Competing with Google, Reliance, Adani

Comparison of Mega Data Centre Investments in India

Company	Investment Size	Capacity Target	Location Focus	Timeline
AirTrunk	$30B (₹3 lakh crore)	5 GW	Multi-state (Mumbai, Chennai, Hyderabad + expansion)	By 2030
Google	$15B	1 GW	Vizag	Ongoing
Reliance	₹1.08 lakh crore ($13B)	Giga-scale campus	Vizianagaram	Approved May 2026
Adani	$100B	Hyperscale AI-ready	Pan-India	By 2035

Risks & Challenges

• Power & Water Security: Renewable energy and desalination needed
• Regulatory Approvals: Streamlined clearances critical
• Global Competition: Competing with Singapore, UAE, US
• Execution Risk: Scaling from 600 MW to 5 GW

AirTrunk operates hyperscale data centres in Australia, Singapore, Japan, Hong Kong, Malaysia, and India. The Australian company provides colocation solutions for cloud, content, and enterprise customers, with real-time hyperscale capacity deployment.

AirTrunk was officially acquired by Blackstone and CPP Investments in December 2024. The deal gave Blackstone majority control of the Sydney-based hyperscale operator, marking one of the largest private equity transactions in Asia-Pacific’s digital infrastructure sector.This acquisition positioned AirTrunk to accelerate its Asia-Pacific and Middle East expansion, including its landmark $30B India investment plan by 2030.

Uber, Adani to Launch India Data Hub for Global Tech Expansion

Uber CEO Dara Khosrowshahi has confirmed that Uber will set up its first India data centre in partnership with the Adani Group, located in Ahmedabad, and operational later this year.

Key Highlights of the Announcement

• Partnership: Uber is collaborating with the Adani Group to establish the facility.
• Location: The data centre will be in Ahmedabad, Gujarat.
• Timeline: Expected to be ready later in 2026.
• Purpose: To test and deploy Uber’s technology at scale, supporting global operations “from India, for the world.”
• Strategic Context: India is one of Uber’s fastest-growing markets, with Bengaluru already serving as a major global tech hub.

Why This Matters

• For Uber: Strengthens engineering and AI infrastructure, supports real-time mobility platforms, predictive demand engines, fraud detection, and analytics.
• For Adani Group: Adds another layer to its AI-linked infrastructure strategy, complementing renewable-powered data centre plans and partnerships with Google and AdaniConneX.

This Uber-Adani partnership adds momentum to India’s positioning as a global hub for AI, cloud, and hyperscale infrastructure. 

Broader Industry Context

• Reliance Digital Connexion (JV with Brookfield & Digital Realty)
• NTT Global Data Centers
• STT GDC India
• CtrlS, Sify, Nxtra (Airtel), Yotta, Equinix

Risks & Considerations

• Energy Dependence: Adani’s renewable-powered promise will be tested against India’s grid reliability.
• Regulatory Oversight: Compliance with India’s Digital Personal Data Protection Act (DPDPA).
• Competition: Reliance, Google, and others scaling aggressively may create pricing pressures.

Quick Comparison: Uber vs Other Global Entrants

Company	Partner	Location	Capacity/Focus
Uber	Adani Group	Ahmedabad	Tech deployment, AI-ready
Google	AdaniConneX	Visakhapatnam	$15B AI hub, gigawatt scale
Reliance	Brookfield, Digital Realty	Andhra Pradesh	₹1.6 lakh crore, 1.5 GW cluster
NTT	Independent	Multiple cities	Hyperscale cloud, enterprise clients

Peter Thiel Bets on Ocean-powered Computing Future

Peter Thiel has led a $140 million investment in Oregon-based startup Panthalassa, which is building fleets of floating, wave-powered AI data centres designed to solve energy and cooling challenges. The funding values Panthalassa close to $1 billion and will accelerate deployment of its Ocean-3 pilot nodes in the Pacific by late 2026.

Panthalassa is a Portland, Oregon–based startup founded in 2016 by Garth Sheldon‑Coulson and others, focused on building floating, wave‑powered data centres. The $140 million Series B funding was led by Peter Thiel, along with investors including John Doerr, Marc Benioff’s TIME Ventures, Max Levchin’s SciFi Ventures, Hanwha Group, Super Micro Computer, Founders Fund, and Lowercarbon Capital

Panthalassa’s Vision

• Company: Panthalassa, founded in 2016 as a public benefit corporation.
• Mission: Harness ocean wave energy to power offshore AI data centres.
• Technology: Large floating steel “nodes” (≈85m long) that generate electricity from wave motion and use seawater for cooling.
• Connectivity: Data transmitted via low-Earth-orbit satellites (e.g., Starlink).
• Deployment Timeline:
  • 2026: Ocean-3 pilot series in the northern Pacific.
  • 2027: Commercial-scale operations.

Investment Details

• Lead Investor: Peter Thiel (PayPal & Palantir co-founder).
• Round Size: $140 million (Series B).
• Valuation: Nearly $1 billion.
• Other Backers: John Doerr, Marc Benioff’s TIME Ventures, Max Levchin’s SciFi Ventures, Hanwha Group, Super Micro Computer, Founders Fund, Lowercarbon Capital, among others.

Why Floating Data Centres?

• Energy Demand: AI workloads are straining land-based grids.
• Cooling Challenge: Traditional data centres consume massive amounts of water and power for cooling.
• Ocean Advantage:
  • Constant wave motion provides reliable renewable energy.
  • Seawater acts as free “supercooling,” extending chip lifetimes.
  • Offshore deployment avoids land costs, permitting delays, and grid bottlenecks.

Comparison: Land vs. Ocean Data Centres

Feature	Land-Based Centres	Panthalassa’s Ocean Nodes
Energy Source	Grid electricity (often fossil fuels)	Wave energy (renewable, abundant)
Cooling	Power-hungry chillers, water-intensive	Natural seawater cooling
Space Constraints	Limited land availability, high costs	Vast ocean space, scalable
Transmission	Grid + fiber networks	Satellite uplinks
Environmental Impact	High carbon footprint, local strain	Lower emissions, offshore footprint

Challenges Ahead

• Durability: Harsh ocean conditions could damage nodes.
• Maintenance: Offshore repairs are complex and costly.
• Regulation: Maritime laws and environmental approvals needed.
• Latency: Satellite transmission may not suit all workloads.

Big Picture

• Panthalassa’s project reflects a broader trend of moving AI infrastructure into unconventional environments—oceans, deserts, and even space.
• If successful, it could deliver ultra-low energy costs (≈$0.02/kWh) and redefine how the next generation of AI computing

Google Breaks Ground on $15 Billion AI Data Hub in Vizag

Google has officially begun construction of a massive $15 billion AI data centre hub in Visakhapatnam (Vizag), Andhra Pradesh, marking one of India’s largest foreign direct investments in digital infrastructure. The project will deliver gigawatt-scale compute, subsea cable connectivity, and clean energy systems, positioning Vizag as a global AI hub.

Key Facts About the Vizag AI Hub

• Investment Size: $15 billion (₹1.26 lakh crore), spread over five years (2026–2030).
• Scale: 1 GW hyperscale AI data centre in the first phase, with plans to expand to 5 GW capacity.
• Location: Spread across 600 acres in Rambilli, Adavivaram, and Tarluvada near Vizag.
• Partners: Google Cloud, AdaniConneX, and Bharti Airtel.
• Infrastructure: New subsea cable landing station, fiber-optic networks, clean energy systems.
• Timeline: Foundation stone laid on April 28, 2026; operations expected by September 2028.

Strategic Importance

• Largest Google project in India and its most expansive AI hub outside the U.S.
• Strengthens India’s AI ecosystem, supporting workloads in cloud computing, cybersecurity, and advanced data operations.
• Anchors India’s role in global AI supply chains, boosting subsea connectivity on the eastern coast.

Economic & Social Impact

• Job Creation: Thousands of direct and indirect jobs in AI engineering, data operations, and cybersecurity.
• Local Development: Andhra Pradesh government allocated 601 acres and promised water supply from the Godavari within 60 days.
• Talent Hub: Expected to reverse migration trends by making Vizag a digital gateway and tech talent destination.

Sustainability & Policy Push

• Clean Energy: Captive solar and renewable-linked power systems to reduce grid dependence.
• Government Priorities: IT Minister Ashwini Vaishnaw urged local server manufacturing, semiconductor packaging, and water-efficient cooling under the IndiaAI Mission.

Comparison with Other Mega Projects in Vizag

Project	Investor	Investment	Capacity	Timeline
Google AI Hub	Google Cloud + AdaniConneX + Airtel	$15B	1 GW (target 5 GW)	Ops by Sept 2028
Reliance AI Cluster	Reliance Industries	$17B	1.5 GW	Ops by Oct 2028

Outlook

Vizag is being compared to the Cyberabad transformation in Hyderabad 30 years ago, with the city now poised to become India’s next global tech hub.

Adani in Talks with Meta and Google to Build $100B Data Centers in India

Adani Group is in discussions with Meta and Google to establish partnerships for building large-scale data centers in India, part of Gautam Adani’s broader plan to invest around $100 billion in digital infrastructure. The talks are focused on leveraging Adani’s strengths in land acquisition and renewable energy to support hyperscale facilities that can meet the growing demand for cloud services and artificial intelligence workloads. Walmart-owned Flipkart is also negotiating with Adani for potential data center sites, underscoring the rising importance of India as a hub for digital infrastructure.

These partnerships, if finalized, would position Adani as a key enabler of global technology expansion in South Asia, while also aligning with sustainability goals through renewable energy integration. The group is evaluating multiple states for site development, though no agreements have yet been finalized. The move reflects India’s ambition to become a central player in the global cloud and AI ecosystem, even as other markets like China warn of oversupply in data centers.

Factor	Impact
Partnership with Meta & Google	Strengthens India’s role in global cloud and AI ecosystems
$100B Infrastructure Push	Signals one of the largest private investments in India’s digital economy
Flipkart’s Interest	Expands ecosystem beyond global tech giants to domestic e-commerce
Renewable Energy Integration	Aligns with sustainability goals and reduces operational costs
Site Exploration Across States	Ensures geographic diversification and resilience

This combination of global partnerships, domestic participation, and renewable energy integration could accelerate India’s readiness for cloud adoption and AI infrastructure, while positioning Adani as a central player in the region’s digital economy.

Singapore's RealVantage Enters Digital Infrastructure With $7M Equity Investment in U.S. Data Center

Global real estate investment platform RealVantage (‘RealVantage’, ‘the Company in Singapore’, ‘the Singapore Company’) – which operates as RV SG Pte. Ltd. in Singapore, a private limited company regulated by the Monetary Authority of Singapore and holds a Capital Markets Services license – is pleased to announce that the Singapore Company has allocated USD 7 million in equity capital in a United States 21-megawatt data center asset acquisition structured through global alternative investment firm Arcapita Group Holdings Limited (‘Arcapita’). The asset has a planned expansion from its current 21-megawatt capacity to 31 megawatts, expected to significantly enhance operating income and overall investment value.

The transaction signals RealVantage’s inaugural foray into the powerful digital infrastructure space; extending the Singapore Company’s portfolio exposure towards artificial intelligence-driven structural demand investment opportunities for its platform members beyond traditional real estate sectors. The acquisition reflects RealVantage's continued strategy of partnering with experienced local operators and trusted institutional managers to access high-quality, income-generating assets across developed markets; as well as oversee asset execution and value creation alongside RealVantage's co-investment capital. Ultimately, the investment is structured to deliver both near-term, income-backed returns and meaningful medium-term value uplift to create exit upside via significant operating income and investment value enhancement.

“Digital infrastructure is no longer a peripheral asset class. In fact, it is my belief that the most durable investment opportunities sit at the intersection of technology and real assets. Our entry into digital infrastructure marks a deliberate step towards capturing long-term value created by the AI revolution. The acquisition reflects our conviction in the structural tailwinds driving demand for data centers; demonstrating our commitment to bringing structural institutional-grade investment opportunities we seek to deliver for our platform members across global markets.” – states Keith Ong (‘Keith’), co-founder and group chief executive officer of RealVantage.

Set against a backdrop of high AI adoption and enterprise cloud demand, Minneapolis is a fast-growing data center hub underscored by an established and robust power infrastructure and heightened demand for high-density digital facilities – reflective of the accelerating pace of enterprise cloud migration and AI infrastructure build-out. Benefitting from a strong geographical risk profile with limited natural disaster exposure, Minneapolis remains a hub for a diverse economic base anchored by Fortune 500 companies, leading healthcare institutions and a growing technology sector.

Adds Keith: "Minneapolis is a market that ticks all the boxes for disciplined, digital infrastructure investing. The city's reliable power supply, institutional-grade corporate tenant base, and low-vacancy environment combine to make it one of the most attractive secondary data center markets in the United States. For RealVantage investors, this deal opens a new frontier: exposure to the infrastructure backbone of the AI economy, structured in the same institutional-grade, risk-managed framework that defines everything we do."

Arcapita is a global alternative investments firm with a management track record spanning over 30 years and a total transaction value exceeding $32 billion. The firm operates through offices in the United States, United Kingdom, Saudi Arabia, the United Arab Emirates, and Singapore, with affiliated offices in Bahrain. Arcapita’s investment strategy focuses on private equity and real estate, and this transaction further expands the firm’s portfolio of income-generating assets in markets supported by strong fundamentals, including the accelerating impact of artificial intelligence and digital transformation in the United States.

TCS in Talks to Build AI Data Centres in India

Tata Consultancy Services (TCS) is in advanced discussions with multiple hyperscalers to establish AI-focused data centres in India reported Business Standard and CNBCTV18 citing CEO K. Krithivasan’s remarks. The CEO confirmed in London that TCS is in advanced discussions with multiple hyperscalers. The reports highlighted India’s projected need for 10 GW of AI data centre capacity by 2030.

This follows its recent partnership with OpenAI, and reflects TCS’s ambition to position India as a global hub for AI infrastructure.

Hyperscalers are large-scale cloud providers that deliver highly scalable computing infrastructure, allowing businesses to expand or shrink resources based on demand.

Key points emerging from TCS talks with Hyperscalers:  

• Capacity Goal: India may require up to 10 gigawatts of AI data centre capacity by 2030, a massive scale-up compared to current facilities.
• Hyperscaler Partnerships: While names haven’t been officially disclosed, hyperscalers typically refer to players like Microsoft Azure, Amazon Web Services (AWS), Google Cloud, and Oracle Cloud.
• Strategic Importance: These centres would support AI model training, enterprise adoption, and sovereign cloud initiatives, aligning with India’s digital transformation goals.
• Economic Impact: Such investments could accelerate job creation, energy innovation, and AI-driven industry growth across sectors like healthcare, finance, and manufacturing.

This move signals that India is preparing not just to consume AI, but to host the infrastructure backbone for global AI development.

AMD Guarantees $300M Loan to Startup Crusoe, Expanding AI Data Center Capacity

AMD has agreed to guarantee a $300 million loan arranged by Goldman Sachs for cloud computing startup Crusoe. The financing will allow Crusoe to purchase and deploy AMD’s AI chips in a new data center in Ohio. The loan is secured by AMD’s chips and related equipment, and Crusoe was able to lock in an interest rate of about 6%, which is lower than typical market rates thanks to AMD’s backing. If Crusoe struggles to attract enough customers, AMD has committed to lease back the chips itself, reducing the startup’s risk exposure.

This move is strategically significant. For AMD, it’s a way to push its AI accelerators into the market and compete more directly with Nvidia, which has used similar financing tactics to expand its footprint.

For Crusoe, the guarantee provides capital to scale its data center capacity without bearing the full financial risk. For the broader AI ecosystem, it signals not only the growing demand for specialized chips but also the creative financing models being used to accelerate deployment in an increasingly competitive landscape.

Notably, this is part of a broader trend rather than a one-off. AMD’s $300 million loan guarantee for Crusoe is explicitly described as mirroring Nvidia’s playbook. Nvidia has previously used similar financing strategies to support cloud providers and startups building “GPU rental” services, essentially helping them acquire Nvidia chips while reducing upfront risk. The idea is that by guaranteeing loans or offering leaseback provisions, chipmakers can accelerate adoption of their hardware, even if the startups themselves don’t yet have stable customer demand.

So while AMD’s move with Crusoe is notable, it’s not unprecedented. Nvidia pioneered this approach, and AMD is now adopting it to compete in the AI infrastructure race. The trend reflects how semiconductor companies are evolving from pure hardware suppliers into financial enablers, using guarantees and creative financing to push their chips into data centers faster.

Nvidia has repeatedly supported cloud providers and AI startups by structuring loan guarantees, leasebacks, and vendor financing to help them acquire its GPUs. For example, in 2023 and 2024, Nvidia backed financing deals for smaller cloud companies that wanted to build GPU clusters but lacked the capital to purchase chips outright. These arrangements often included provisions where Nvidia would lease back the hardware if demand fell short, ensuring the startup wasn’t left with stranded assets.

AMD’s $300M guarantee for Crusoe is essentially a competitive response to Nvidia’s strategy. Both companies recognize that AI chips are expensive and scarce, and startups often can’t raise enough capital quickly. By stepping in as guarantors, chipmakers accelerate adoption of their hardware, lock in long-term customers, and expand their footprint in the AI data center market.

So, this is a trend wherein semiconductor companies are increasingly acting not just as suppliers, but as financial enablers. They’re using guarantees, leasebacks, and creative financing to push their chips into data centers faster, especially as competition for AI infrastructure heats up.

Timeline of Chipmaker Loan Guarantees & Financing Deals

Year	Company	Partner/Startup	Deal Structure	Strategic Purpose
2025 (Oct)	Nvidia	OpenAI	Considered guaranteeing part of OpenAI’s loans for data center construction; structured as lease of up to 5M Nvidia chips valued at ~$350B, with Nvidia potentially backstopping debt obligations.	Accelerate OpenAI’s AI infrastructure buildout while securing massive GPU deployment commitments.
2026 (Feb)	Nvidia	Indian VC firms & startups	Partnered with Peak XV, Elevation Capital, Nexus, Accel India, etc., to co-fund AI startups and data centers using Nvidia Blackwell Ultra chips.	Expand Nvidia’s footprint in India’s sovereign AI push and $200B data center investment wave.
2026 (Feb)	AMD	Crusoe	Guaranteed $300M loan arranged by Goldman Sachs, collateralized by AMD AI chips; interest ~6%; leaseback clause where AMD rents chips if Crusoe fails to attract customers.	Push AMD accelerators into data centers, directly competing with Nvidia’s financing tactics.

Key Takeaways

Nvidia pioneered this model: It began offering guarantees and leasebacks to reduce risk for partners like OpenAI, ensuring GPU adoption even when startups lacked upfront capital.

AMD followed suit: Its Crusoe deal is a direct competitive response, showing this is now a trend across chipmakers.

Global expansion: Nvidia is extending the model to India, combining financing with venture capital partnerships to scale AI infrastructure.

Strategic shift: Chipmakers are no longer just hardware suppliers—they’re acting as financial enablers, underwriting risk to accelerate AI ecosystem growth.

TryfactaConnex Signs $7.7B MoU with Uttar Pradesh to Build India’s First Gigawatt-Scale AI Data Center Campus

Representative Image

TryfactaConnex, an affiliate of U.S.-based Tryfacta, Inc., today announced the signing of a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to launch its India AI infrastructure platform, including an initial investment of approximately $7.7 billion to develop a 1-gigawatt hyperscale AI data center campus. The announcement was made at the AI Impact Summit 2026 in New Delhi.

The project establishes the foundation for a vertically integrated AI infrastructure platform that combines compute capacity and dedicated energy generation, designed for large-scale artificial intelligence workloads. The campus is structured to support hyperscalers, sovereign AI initiatives, enterprise cloud operators, and advanced research institutions requiring high-density compute and long-term energy reliability.

The site benefits from access to grid connectivity, water, fiber networks, and natural gas infrastructure and is planned to incorporate a diversified energy mix including grid power, natural gas generation, solar energy, battery storage, and future nuclear integration. The platform is designed to scale beyond the initial phase toward multi-gigawatt capacity over the coming decade.

“AI infrastructure is rapidly becoming a core national economic asset,” said Adesh Tyagi, Founder and CEO of TryfactaConnex. “Our model integrates power generation and compute capacity into a single platform capable of delivering reliable, baseload energy at scale. India represents one of the most strategic global markets for long-term AI capacity deployment.”

“I would like to thank Prime Minister Narendra Modi and Chief Minister Yogi Adityanath for their leadership in enabling companies like ours to contribute to India’s leadership in both AI and energy,” said Adesh Tyagi, Founder and CEO of TryfactaConnex. “TryfactaConnex is committed to building highly reliable, resilient baseload energy infrastructure through our planned 3-gigawatt grid-integrated gas and nuclear platform. We recognize the strategic importance of this moment and are focused on delivering the power foundation necessary for India to maintain its global AI advantage.”

“What makes our Uttar Pradesh campus one of the premier energy sites in the country is that it has been designed from the outset as a green energy-led platform, enabling the integration of multiple clean power sources at scale,” said Sanjeev Rajoura, Executive Vice President, TryfactaConnex.

TryfactaConnex expects the development to support domestic cloud infrastructure, AI model training, enterprise computing, and public-sector digital platforms while positioning India as a competitive global AI compute hub. The India platform forms part of TryfactaConnex’s broader international roadmap to deploy gigawatt-scale AI infrastructure across multiple global markets.

The company is actively engaging institutional investors, infrastructure funds, strategic technology partners, and energy developers as part of the platform’s phased financing strategy.

About TryfactaConnex

TryfactaConnex is a next-generation AI infrastructure company developing hyperscale data center campuses powered by resilient, gigawatt-scale energy systems designed for advanced artificial intelligence workloads. Its vertically integrated energy architecture combines grid interconnections, natural gas, nuclear, solar generation, and battery storage to deliver highly redundant, always-on power platforms purpose-built for AI computing.

Adani Commits $100 Bn to Sovereign AI Infrastructure

The Adani Group today announced one of the world’s largest integrated energy-compute commitments, a direct investment of USD 100 billion to develop renewable-energy-powered, hyperscale AI-ready data centres by 2035. The initiative will establish a long-term sovereign energy and compute platform designed to position India as a global leader in the emerging Intelligence Revolution.

The investment is expected to catalyse by 2035 an additional USD 150 billion across server manufacturing, advanced electrical infrastructure, sovereign cloud platforms and supporting industries. Together, this is projected to create a USD 250 billion AI infrastructure ecosystem in India over the decade.

"The world is entering an Intelligence Revolution more profound than any previous Industrial Revolution," said Mr Gautam Adani, Chairman of the Adani Group. "Nations that master the symmetry between energy and compute will shape the next decade. India is uniquely positioned to lead. At Adani, we are building on our foundation in data centres and green energy to expand into the complete five-layer AI stack focused on India's technological sovereignty. India will not be a mere consumer in the AI age. We will be the creators, the builders and the exporters of intelligence and we are proud to be able to participate in that future."

This roadmap builds on AdaniConnex's existing 2 GW national data centre, expanding toward a 5 GW target that positions India at the epicentre of the global AI economy. This vision is anchored by landmark partnerships with Google to establish the nation's largest gigawatt-scale AI data centre campus in Visakhapatnam, alongside additional campuses in Noida, and with Microsoft spanning Hyderabad and Pune. The Adani Group is also in discussion with other major players seeking to establish large scale campuses across India thereby further cementing its position as India's premier AI infrastructure partner.

In line with this vision, the Group will also deepen its data centre partnership with Flipkart, advancing the collaboration toward the development of a second AI data centre purpose-built to support Flipkart's next-generation digital commerce, high-performance computing and large-scale AI workloads.

The World’s Largest Integrated Data Centre Platform

The 5 GW deployment will create the world’s largest integrated data centre platform, combining renewable power generation, transmission infrastructure and hyperscale AI compute within a single coordinated architecture. Unlike conventional data centre expansions, the program is designed as a unified energy-and-compute ecosystem, where generation, grid resilience and high-density processing capacity are developed in parallel.

Facilities will be optimised for large high-density compute clusters and next-generation AI workloads, supported by advanced liquid cooling systems and high-efficiency power architecture. Dedicated compute capacity will support Indian Large Language Models (LLMs) and national data initiatives, ensuring long-term data sovereignty. Reliable transmission networks and advanced grid systems will underpin the platform, ensuring stability, scalability and uptime at hyperscale.

Leveraging India’s Renewable Advantage

As global AI workloads become increasingly energy-intensive, the Adani Group is uniquely positioned to provide the competitively priced, carbon-neutral power essential for this transition. Central to this strategy is Adani Green Energy’s 30 GW Khavda project, of which over 10 GW is already operational. In addition, the Group is committed to investing another USD 55 billion to expand its renewable energy portfolio, which will include one of the world's largest battery energy storage systems (BESS).

Strategic connectivity through cable landing stations, including at Adani’s network of ports, will ensure low-latency global integration with the Americas, Europe, Africa and Asia.

Derisking and Building Aatmanirbhar Supply Chains

To reduce exposure to global supply-chain volatility, the Adani Group will also co-invest in domestic manufacturing partnerships of critical infrastructure components, including high-capacity transformers, advanced power electronics, grid systems, inverters and industrial thermal management solutions.

This approach positions India not only as a data hub but as a producer and exporter of next-generation intelligence and compute infrastructure.

Integrating with National Priorities
By leveraging its existing AI-based industry cloud which currently manages millions of renewable assets in real-time, the Adani Group is establishing a digital blueprint for significant internal compute expansion. Aligned with the PM Gati Shakti program, the Group is embedding agentic AI across its logistics, ports and industrial corridors to create hyper-efficient, smart operations. This strategic integration not only modernises national infrastructure but also ensures data sovereignty, bridging the gap between heavy industry and intelligent, secure automation.

Democratising High-Performance Compute
In line with India's five-layer AI architecture (Applications, Models, Chips, Energy and Data Centres), the Group will actively participate in partnerships across the full stack. A significant portion of GPU capacity will be reserved for Indian AI startups, research institutions and deep-tech entrepreneurs, alleviating compute scarcity and fostering a domestic innovation ecosystem.

Capitalising on India’s Talent

Working with leading academic institutions, the Adani Group will establish specialised AI Infrastructure Engineering curricula, applied AI research labs focused on energy and logistics and a national fellowship program to address the growing skills gap.

This long-term commitment by the Adani Group establishes one of the world’s most ambitious integrated energy and AI infrastructure platforms ever undertaken at national scale. The Adani Group invites global technology companies, sovereign institutions and innovation partners to participate and collaborate in building India’s next-generation AI infrastructure platform.

About Adani Enterprises Ltd (AEL)

Adani Enterprises Limited (AEL) is the flagship company of Adani Group, one of India’s largest business organisations. Over the years, Adani Enterprises has focused on building emerging infrastructure businesses, contributing to nation-building and divesting them into separate listed entities. Having successfully built sizeable and scalable businesses like Adani Ports & SEZ, Adani Energy Solutions, Adani Power, Adani Green Energy, Adani Total Gas and Adani Wilmar, the company has contributed to make India self-reliant with our robust businesses. This has also led to significant returns to our shareholders for three decades.

The next generation of its strategic business investments are centered around green hydrogen ecosystem, airport management, data center, roads and primary industries like copper and petrochem - all of which have significant scope for value unlocking.