In addition to the investment commitments of other Indian conglomerates such as Reliance Industries, Tata Group, and Larsen & Toubro, the Adani Group has committed $100 billion to an artificial intelligence (AI)-ready data center and power ecosystem, following the US’s $500 billion Project Stargate model.
According to experts, the ecosystem offers Indian enterprises greater control over the operationalization of their multi-gigawatt data centers in addition to a cost advantage.
According to Mint’s calculations based on analyst estimates and public statements, major Indian conglomerates have committed $125 billion in investments so far in the AI ecosystem, including Reliance Industries, the Tata Group, and Larsen & Toubro.
This is comparable to the US’s $500 billion Project Stargate, where leading private sector businesses have pledged to fund the infrastructure required to drive the next wave of artificial intelligence and maintain the nation’s advantage over competitors like China.
For example, the chairman of the Adani Group, Gautam Adani, stated in a press release on Tuesday that the Adani Group’s investment strategy involves not only the construction of data centers to meet the demand for AI, but also the ecosystem of energy generation that would power them.
According to a corporate executive who spoke on condition of anonymity, the Ahmedabad-based conglomerate plans to invest this $100 billion across its group companies by 2035, with roughly $7 billion already spent.
According to this CEO, data centers will be constructed in Gujarat, Maharashtra, Karnataka, Rajasthan, and Andhra Pradesh. Madhya Pradesh, Tamil Nadu, Gujarat, and Rajasthan would all have renewable energy infrastructure. “The world is entering an Intelligence Revolution more profound than any previous Industrial Revolution,” Adani stated in the press release. “The symmetry between energy and computation will determine the course of the next ten years for those nations that master it.”
The characteristics of computing
This investment, which is undoubtedly one of the biggest the Adani Group has made to yet, has not revealed the source of money.
Reliance Industries is preparing a comparable end-to-end strategy, establishing AI-ready data centers driven by renewable energy. Though Morgan Stanley analysts projected in a note on October 31, 2025, that the Mumbai-based conglomerate may spend up to $15 billion every 1 GW of data center capacity, the company has not yet released a consolidated investment forecast for this ecosystem.
A $6.5 billion investment in AI-ready data centers at Tata Consultancy Services Ltd. and power generating investments at Tata Power Ltd. are also part of the Tata Group’s portfolio. In contrast to Adani and Reliance’s roadmap, the Mumbai-based conglomerate has not disclosed captive power capacity at Tata Power for TCS’s data centers. In addition, Tata Electronics is spending $3 billion on an outsourced semiconductor assembly and testing (OSAT) facility in Assam and $11 billion on the construction of a semiconductor factory in Gujarat.
By possessing the land, servers, and physical infrastructure, as well as having the capacity to build internally, Larsen & Toubro Ltd. (L&T) intends to create a moat. According to a January 21 Mint story, the business is also thinking about building its own renewable energy facilities to power these data centers, but a final decision has not yet been made.
“This level of dedication is not a gamble on AI fervor. The infrastructural play is multi-layered. “It revolves on power, time, and control,” stated Sanchit Gogia, CEO and top analyst at technology research and advising firm Greyhound Research.
Important Takeaways
With a combined investment of $125 billion in AI infrastructure, Indian companies have established themselves as a major competitor to the tech hegemony of the US and China.
This strategy avoids grid bottlenecks and lowers operating costs by connecting data centers directly to renewable energy generation.
These are “layered” investments, meaning that even if the precise need for AI computation changes, the assets will still be worth something.
Tata’s $14 billion investment in semiconductor fabrication and assembly demonstrates how the play extends beyond data centers into the silicon layer.
These companies want to provide India pricing power in the upcoming ten years of the global intelligence revolution by managing the “balance between energy and computation.”
Constructing the designated area
“Dedicated thermal and renewable power for data centers alters the risk equation,” Gogia said. This capability will support hyperscale campuses if computational demand increases. The same power can be sold into larger demand pools if utilization slows down, lessening reliance on a single narrative.
The operationalization of these corporations’ data centers is also more in their control thanks to these significant investments. Due to lagged grid expansion, several Western economies are currently experiencing a bottleneck in the provision of electricity connectivity to data centers.
It is possible to construct data halls more quickly than to power them. You can reduce the uncertainty window by coordinating generating, transmission, storage provisioning, and campus construction in a single sequence. Stronger tenant bargaining and price power result from that, Gogia stated. Data center electricity costs also increase in such a capacity-constrained scenario. “Owning the generating capacity might shield these corporations from these kinds of cost increases,” he continued.
Finally, he added, the scale has other benefits. As vendor understanding increases, big procurement lowers costs, and commissioning becomes more predictable, repeated activation of data centers lowers friction in each succeeding iteration.
Assuming that every AI application will be successful is not the basis for the belief behind a figure like 100 billion. It results from creating a platform that creates layered monetization channels based on ecosystem positioning, infrastructure, and power, Gogia stated.
