India Asks Microsoft to Build Local AI Tech and Put Data Centres Near Power Plants

Local Growth

India wants Microsoft to deepen its local footprint beyond simply building data centres. S Krishnan, the Secretary for the Ministry of Electronics and Information Technology, stated that the government is pushing for more local development centres, research facilities, and domestic capacity across the artificial intelligence hardware ecosystem. Speaking at the launch of Microsoft's newest cloud and AI infrastructure region in Hyderabad, Krishnan explained that India must balance using advanced global technology with building its own domestic and sovereign capabilities.

Data and Chips

Krishnan noted that India's large scale, digital public infrastructure, and huge volumes of transactional data offer a chance to build AI applications at scale. He called India a potential application powerhouse of the world. However, this requires big physical investments. Krishnan urged Microsoft to set up more development centres in the country to serve as a global research base. He also asked the company to locate future data centres closer to electricity generation sources instead of crowding around cable landing stations and major connectivity hubs, pointing out that India's power grid and renewable energy can make the setup more sustainable and efficient.

Job Creation

Krishnan stressed that government policies, tax rules, ease-of-doing-business steps, and the new telecom law are designed to make building data centres and connecting them to the grid much easier. He added that the main goal of this push is to create higher-quality jobs and welfare for the public through increased research and development activity.