Indian Telecom Companies Announce Major Investment in AI Data Centres

India's leading telecom companies are preparing to spend more than Rs 1 lakh crore over the next two to three years on building large-scale data centres designed for artificial intelligence. This marks a clear change in their strategy, as they are focusing on building infrastructure that constitutes heavy computing tasks and advanced digital services rather than mobile networks.

Right now, services like cloud computing, cybersecurity, Internet of Things platforms, and AI-powered solutions comprise up 15 to 30 percent of companies' overall income. Executives expect this share to increase to 30 to 40 per cent in the coming years. The new investments are aimed at making business services a large chunk of their earnings. It will essentially reduce dependence on traditional mobile connectivity.

Airtel and Jio Lead the Way

Bharti Airtel has announced plans to expand its Nxtra data centre capacity from 240 megawatts to 400 megawatts. In partnership with Google, Airtel is also setting up a one-gigawatt AI hub in Visakhapatnam. Reliance Jio is planning an even larger project-a three-gigawatt data centre in Jamnagar. Jio's approach is to create what it calls a full-stack AI factory, linking its data centres with its wider artificial intelligence ecosystem. Airtel, meanwhile, is focusing on sovereign cloud services and enterprise AI offerings.

Industry Experts on the Transition

According to Deloitte India, between 20 and 30 percent of investment budgets for the financial year 2027 will be directed toward building AI-ready data centres and related infrastructure. Alvarez & Marsal India has pointed out that the projects announced by Airtel and Jio could add between four and five gigawatts to India's existing digital infrastructure.

The companies' moves come with the notion that artificial intelligence systems will help reduce operating costs for telecom companies. These savings are expected to become visible within 18 to 24 months.

The new developments are expected to make India a bigger player in the global tech scene and bring in more commercial clients that need reliable and powerful computer services.

Stocks Performance

Bharti Airtel's shares are trading at around 2113.80 rupees, with a modest gain of 0.27 per cent on Thursday. Over the past week, the stock was up nearly 2 per cent, and over the past three months, it has risen by more than 8 per cent. Morgan Stanley sees a further surge and raised their target price to 2435 rupees.

Reliance Industries, the parent company of Jio, is trading at 1544.00 rupees, almost flat compared to its previous close. The stock has been hovering near its 52-week high of 1581 rupees, reflecting investor confidence in its diversified businesses and upcoming AI infrastructure plans.

Market experts believe both companies are well-positioned for long-term growth, with their AI-ready data centre investments expected to bolster enterprise revenues and improve operational efficiency.