AI Adoption and Cloud Computing Investments Power India's Technology Services Market Expansion
India's AI market and public cloud services are set for rapid growth, with cloud spending expected to reach USD 17.5 billion by 2026, driven by AI adoption, Global Capability Centres, enterprise modernization, and digital transformation.
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According to a recent report by Equirus Securities, the Indian AI market, public cloud services, AI services, Global Capability Centers (GCCs), and AI infrastructure are all anticipated to grow rapidly over the coming years. According to the report, growing cloud investments and AI usage are opening up new possibilities for India's technology industry.
According to Equirus, public cloud service spending in India is expected to increase by 28.1% annually, from USD 13.7 billion in 2025 to USD 17.5 billion in 2026. Businesses shifting more of their operations to the cloud and growing AI-based applications are driving this trend. As businesses continue to develop cloud-native solutions, Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) are anticipated to drive this expansion.
The research also emphasizes how AI is driving up demand for data centers globally. Nearly 70% of all data center demand is anticipated to come from AI workloads by 2030. As a result, businesses are making significant investments in advanced chips, speedier cloud services, and AI-ready infrastructure.
Global Capability Centers (GCCs) are expanding rapidly in India as well. Large multinational corporations used to be the primary organizers of these centers, but mid-sized and private equity-backed organizations are now opening GCCs all across the nation. To enhance business operations and drive innovation, these centers concentrate on AI, software engineering, product development, finance, and data analytics.
The report claims that India is still a desirable location for AI and digital transformation initiatives due to its large number of skilled tech professionals and affordable operational costs. An estimated USD 10–12 billion is already being generated by the Indian market for AI services, with numerous companies transitioning AI initiatives from testing to practical application.
According to the report's conclusion, India's IT sector is well-positioned to profit from the growing demand for data engineering, cloud computing, artificial intelligence, and business modernization. India is anticipated to solidify its standing as a worldwide center for innovation and technology as companies continue to invest in cloud computing and artificial intelligence.
This article is based on information from The Economic Times
