PM invites world’s data to reside in India, bets on data centres to power AI future
The Prime Minister’s remarks come just ahead of the Global AI Impact Summit being hosted in New Delhi from February 16 to 20, where policymakers, technology leaders, and investors from over 60 countries are expected to attend.
- Feb 15, 2026,
- Updated Feb 15, 2026 9:51 PM IST
Pitching India as the next global nerve centre for digital infrastructure, Prime Minister Narendra Modi on Sunday said the Union Budget’s incentives for data centres are aimed at transforming the country into a preferred destination for artificial intelligence (AI) investments and large-scale data hosting.
In an interview with PTI, PM Modi described data centres as the “foundational layer” of the digital economy and said India is prepared to host global data flows.
“We invite the whole world’s data to reside in India,” he said, framing the policy push as part of a broader ambition to move from digital adoption to digital leadership.
Budget incentives target global cloud players
The Budget for FY2026-27, presented by Finance Minister Nirmala Sitharaman, proposes tax incentives designed to lower the cost of building advanced data infrastructure and attract hyperscale investments.
Under the plan, global cloud companies such as Amazon, Google, and Microsoft could receive a tax holiday on certain global cloud revenues routed through Indian data centres until 2047. Data-centre services have also been brought under Safe Harbour Rules with a prescribed margin, a move aimed at providing tax certainty to investors.
Officials say the measures are intended to spur capital expenditure, generate employment, and strengthen India’s AI ecosystem while maintaining regulatory oversight on competition and data protection.
Data centres as backbone of AI growth
Modi stressed that while consumer-facing technologies attract attention, the infrastructure enabling them is equally critical.
“AI needs computing power and data-centre infrastructure. By expanding capacity today, we are laying the foundations for a thriving Indian AI ecosystem,” he said, adding that investments in digital infrastructure would create “massive” opportunities for India’s youth.
India’s scale — both as a producer and consumer of data — gives it a structural advantage, he argued, noting that the country’s diversity provides rich datasets essential for training next-generation AI systems.
Global pitch ahead of AI Summit
The Prime Minister’s remarks come just ahead of the Global AI Impact Summit being hosted in New Delhi from February 16 to 20, where policymakers, technology leaders, and investors from over 60 countries are expected to attend.
Among the prominent leaders scheduled to participate are Emmanuel Macron and Luiz Inácio Lula da Silva, underscoring the event’s geopolitical and economic significance.
Drawing a historical comparison, Modi said India missed earlier industrial transformations but must lead the present technological shift.
“In this technological and data-driven revolution, it is important that we take the lead,” he said, emphasising investments across security, skills, software, and infrastructure to build a trusted digital ecosystem.
Pitching India as the next global nerve centre for digital infrastructure, Prime Minister Narendra Modi on Sunday said the Union Budget’s incentives for data centres are aimed at transforming the country into a preferred destination for artificial intelligence (AI) investments and large-scale data hosting.
In an interview with PTI, PM Modi described data centres as the “foundational layer” of the digital economy and said India is prepared to host global data flows.
“We invite the whole world’s data to reside in India,” he said, framing the policy push as part of a broader ambition to move from digital adoption to digital leadership.
Budget incentives target global cloud players
The Budget for FY2026-27, presented by Finance Minister Nirmala Sitharaman, proposes tax incentives designed to lower the cost of building advanced data infrastructure and attract hyperscale investments.
Under the plan, global cloud companies such as Amazon, Google, and Microsoft could receive a tax holiday on certain global cloud revenues routed through Indian data centres until 2047. Data-centre services have also been brought under Safe Harbour Rules with a prescribed margin, a move aimed at providing tax certainty to investors.
Officials say the measures are intended to spur capital expenditure, generate employment, and strengthen India’s AI ecosystem while maintaining regulatory oversight on competition and data protection.
Data centres as backbone of AI growth
Modi stressed that while consumer-facing technologies attract attention, the infrastructure enabling them is equally critical.
“AI needs computing power and data-centre infrastructure. By expanding capacity today, we are laying the foundations for a thriving Indian AI ecosystem,” he said, adding that investments in digital infrastructure would create “massive” opportunities for India’s youth.
India’s scale — both as a producer and consumer of data — gives it a structural advantage, he argued, noting that the country’s diversity provides rich datasets essential for training next-generation AI systems.
Global pitch ahead of AI Summit
The Prime Minister’s remarks come just ahead of the Global AI Impact Summit being hosted in New Delhi from February 16 to 20, where policymakers, technology leaders, and investors from over 60 countries are expected to attend.
Among the prominent leaders scheduled to participate are Emmanuel Macron and Luiz Inácio Lula da Silva, underscoring the event’s geopolitical and economic significance.
Drawing a historical comparison, Modi said India missed earlier industrial transformations but must lead the present technological shift.
“In this technological and data-driven revolution, it is important that we take the lead,” he said, emphasising investments across security, skills, software, and infrastructure to build a trusted digital ecosystem.