India bares first AI-based data center park in Chhattisgarh

In a significant step toward bolstering India’s digital infrastructure, the state of Chhattisgarh in east-central India has launched the foundation for the country’s first artificial intelligence (AI)-based data center park. The facility was inaugurated by the state’s Chief Minister, Vishnu Deo Sai.

The initiative is reportedly projected to generate approximately 2,000 employment opportunities, 500 of which will be direct jobs. It emphasizes the recruitment of local talent.

Data centers are vital to AI development and deployment, providing the advanced computing capabilities, vast storage systems, and high-speed connectivity essential for modern AI technologies. The data center industry is rapidly expanding, driven by the growth of digital services and increased demand for robust infrastructure.

The Chhattisgarh facility, occupying 5.5 hectares, will be operated by RackBank Datacenters Private Limited. Of this, 2.7 hectares will be designated as a Special Economic Zone (SEZ), entirely devoted to AI-oriented services and infrastructure. The project’s first phase will begin with an energy capacity of 5 megawatts (MW), with plans to scale up to 150MW.

Beyond data storage and management, the park will offer specialized services in AI, financial technology, health technology, defense, and data analysis. The infrastructure will feature GPU-powered high-performance computing systems along with capabilities for real-time data streaming, processing, and AI-driven solutions.

The Chief Minister reportedly described the initiative as a foundational step toward ushering in a new era of technological empowerment and economic growth. “This isn’t just a data centre—it’s the digital backbone for progress and inclusion,” he remarked.

India’s data center market is on a steep upward trajectory. As noted in the 2024–2025 Economic Survey, the market is set to grow from $4.5 billion in 2023 to $11.6 billion by 2032, marking a compound annual growth rate (CAGR) of nearly 11%.

“India benefits from lower construction costs, owing to its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of $6.8 million per megawatt (MW) in 2023, compared to $9.17 million in Australia, $12.73 million in Japan, and $11.23 million in Singapore,” the Economic Survey pointed out.

India’s total colocation data center capacity hit 977MW in 2023, with a year-on-year growth of 105% as 258MW were added during the year. Between 2024 and 2028, another 1.03 gigawatts (GW) is under construction, and an additional 1.29GW is in the planning phase.

In another major development, India is on course to host the world’s largest data center by capacity. Mukesh Ambani’s Reliance Group is investing in advanced AI chips from Nvidia (NASDAQ: NVDA) and is constructing a massive data center in Jamnagar, Gujarat—the home state of Prime Minister Narendra Modi. This upcoming facility is expected to deliver an unprecedented capacity of 3 gigawatts, significantly outpacing the world’s largest current data centers, which remain under 1GW in size.

In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.

Watch: ‘Disruptive’ blockchain can be useful for India