Media365
India is set for rapid expansion in the global data centre ecosystem as artificial intelligence accelerates demand for digital infrastructure, a Goldman Sachs Research report said.
The report identified India, Japan and the Philippines as the major growth engines for data centres in Asia. While Japan’s expansion is being supported by government-led initiatives and the Philippines is benefiting from regulatory improvements, India’s growth story is being driven by long-term structural advantages.
According to Goldman Sachs, India’s young population, strong technology workforce and geographic proximity to the Middle East place the country in a favourable position to capture the next wave of data centre investments.
The report noted that demand across Asia remains strong as traditional cloud computing requirements continue to rise alongside new AI-driven workloads. The emergence of graphics processing unit (GPU)-heavy and AI-first infrastructure needs is expanding the overall market rather than merely replacing existing capacity.
“The rise of AI is fundamentally changing customer timelines and infrastructure needs,” the report said. Goldman Sachs highlighted that AI customers are reshaping how data centres are planned and built. Large single-tenant AI clients are committing to capacity much earlier, even before construction begins, to secure customised infrastructure designs. In contrast, traditional multi-tenant customers typically expect shorter delivery timelines.
The growing adoption of artificial intelligence is also increasing demand for advanced facilities capable of supporting high-performance computing while maintaining efficient power usage.
However, the report added that geopolitical developments and evolving regulations are creating new challenges for operators. Data centre companies are now required to conduct deeper compliance checks, extending due diligence beyond immediate customers to include end-users and supply chains.
Despite these challenges, Goldman Sachs expects Asia’s data centre industry to witness a steep growth trajectory, with India positioned as a key beneficiary of the global AI infrastructure boom.
