Adani Unveils $100 Billion Sovereign AI Infrastructure Plan Aligned with India's National Strategy

The Adani Group has announced a comprehensive $100 billion investment plan to establish sovereign AI infrastructure across India, aligning with Prime Minister Narendra Modi's national artificial intelligence strategy. This initiative will develop 5 GW of hyperscale datacenters optimized for AI workloads, scheduled for completion by 2035.

These facilities will exclusively utilize renewable energy and feature liquid cooling systems designed for high-density computing clusters. The infrastructure will host Indian-language large language models (LLMs) and support national data initiatives, positioning India as a creator rather than merely a consumer of AI technology. Adani's blueprint specifies dedicated compute capacity for public sector AI projects and mandates localization of data processing under India's data protection regulations.

Concurrently, the government has expanded its National AI Mission GPU program, adding 20,000 GPUs to its existing 38,000-unit cluster available to domestic enterprises at ₹65 ($0.72) per hour. This expansion responds to compliance requirements under India's Digital Personal Data Protection Act, providing affordable sovereign infrastructure alternatives to international cloud providers.

Prime Minister Modi emphasized regulatory guardrails during the AI Impact Summit, stating: "AI must expand human capability while preserving social foundations. Our framework prioritizes AI as an enabler of opportunity, not a threat to livelihoods." The national strategy requires AI deployments to undergo algorithmic impact assessments and demonstrate tangible job creation metrics.

While Adani's $100 billion investment appears substantial, its nine-year timeline contrasts with Big Tech's accelerated $67 billion India investments. Compliance deadlines require AWS, Google, and Microsoft to operationalize their Indian datacenters within three years under foreign direct investment regulations. All providers must demonstrate energy efficiency compliance with India's BEE Star Rating system and submit annual AI ethics reports to the Ministry of Electronics & Information Technology.

The National AI Governance Framework published alongside these developments mandates:

1. Sovereign data processing for public sector AI projects by Q3 2027
2. Algorithmic transparency reports for LLMs processing Indian-language data
3. Renewable energy procurement milestones for AI infrastructure
4. Local workforce development quotas for AI operations

This coordinated industry-government approach establishes India's compliance architecture for next-generation AI infrastructure, balancing technological ambition with regulatory oversight to position the nation among global AI leaders.