AI in the enterpriseAnalysis
Data-centre pledges, GPUs onboarded under the IndiaAI Mission and their reported use, from Rhodium Group's 27 October report and government statements, May 2025 to October 2026.
Everywhere else the shortage in AI compute is of supply. Alphabet said on 28 October that for Google Cloud “there’s huge demand” and that, “given the supply-constraint environment”, it had started renting third-party capacity.2 Rental prices for the newest chips rose from August to late October, as our GPU price trend shows. Rhodium Group’s report on India, published the day before, opens with the opposite problem: “India is building AI compute faster than it can use it.”1 If you run a company in India that needs GPU time, the question is practical: is the subsidised capacity there for you, and what does the gap between the pledges and the use mean for what you pay?
Rhodium’s Table 1 lists twelve commitments, from Reliance’s US$110bn over 2026–2032 and the Adani Group’s US$100bn through a joint venture over 2026–2035, to US$1bn from Airtel’s Nextra.1 The government’s own framing is narrower: a PIB backgrounder of 14 September said “investments of nearly USD 70 billion are already underway”, with “an additional USD 90 billion in announced projects”, and put installed data-centre capacity at 1.57 GW in August 2026, projected to reach nearly 8 GW by 2030.3 At the India AI Impact Summit in February, PIB recorded Reliance’s pledge as “USD 110 billion over seven years towards AI-focused infrastructure” and Adani’s as “USD 100 billion by 2035”.4
Reliance and Adani account for US$210bn of the roughly US$316bn of commitments Rhodium lists
Major AI data-centre investment commitments in India, US$bn, as listed by Rhodium Group, periods from 2025 to 2035
Source: Rhodium Group, Hyperscaler Heaven?, Table 1, based on company announcements · as of 27 October 2026 · Amazon is listed as 21+. Periods differ by company; totals are commitments, not spending
Rhodium’s account of why the money comes covers cost, power and tax. Mumbai ranks as the second-cheapest major hub in the world to build a data centre, after Shanghai; India installed a record 50 GW of renewable capacity in 2025; and the Union Budget added a 20-year tax holiday for foreign cloud providers. It also notes that India produces 20% of the world’s data but hosts under 3% of global data-centre capacity, and that a typical project can need 30–40 separate approvals.1
The IndiaAI Mission, approved in March 2024 with ₹10,371.92 crore over five years, began with a target of 10,000 GPUs.6 MeitY said on 30 May 2025 that the common compute capacity had crossed 34,000.5 From October 2025 PIB put it at 38,000, available at ₹65 an hour, which it called on 10 February “nearly one third of the global average cost”.67 On 17 February, at the AI Impact Summit, the IT minister, Ashwini Vaishnaw, said India would add 20,000 GPUs “in the coming weeks” beyond the existing 38,000.8 On 25 March PIB still gave “more than 38 thousand”.9 A PIB factsheet of 13 August gave “45,000+ Graphics Processing Units (GPUs), as of June 2026”.10
The official GPU count held at 38,000 from October to March, and stood at 45,000+ by June
GPUs onboarded under the IndiaAI Mission as stated by the government, with Rhodium's report on their use, May 2025 to October 2026
| Date | Event | Detail |
|---|---|---|
| 30 May 2025 | 34,000+ GPUs | MeitY: common compute capacity crosses 34,000 |
| 12 Oct 2025 | 38,000 GPUs at ₹65/hour | PIB: up from an initial target of 10,000 |
| 17 Feb 2026 | +20,000 promised | Vaishnaw: “in the coming weeks”, beyond 38,000 |
| 25 Mar 2026 | 38,000+ onboarded | PIB: 190 projects approved |
| 13 Aug 2026 | 45,000+ as of June 2026 | PIB factsheet: 237 projects, 93.18 lakh GPU-hours |
| 27 Oct 2026 | ~80% reportedly unused | Rhodium Group; no source given |
Source: MeitY (Digital India); PIB releases, backgrounders and factsheets; Rhodium Group · as of 2 November 2026 · Each count is as stated on that date; the government publishes no monthly series
Both numbers are the government’s, at different dates: 38,000 in statements from October 2025 to March 2026, and 45,000+ as of June 2026 in the August factsheet. The 38,000 plus the promised 20,000 would be 58,000; the government has not said, in any document we found, how many of the 20,000 had arrived by June. We found no dated official target beyond that February promise.
Rhodium wrote that “nearly 80% of its GPUs reportedly sit unused, despite availability at prices less than 40% below the market rate”. The report names no source for the 80% figure.1 Its reasons are on the demand side: “only a handful of India’s AI startups actually train models and therefore need dedicated GPU clusters”, and Indian AI startups raised US$1.3bn last year, which it puts at 0.6% of private equity and venture money invested in the world. It also wrote that enterprise and edge data centres used only by Indian entities are “less than 13%” of India’s operational capacity, against roughly 60% leased out by hyperscalers.1
Rhodium reports about one subsidised GPU in five in use, and under 13% of capacity serving only Indian entities
Shares reported by Rhodium Group: IndiaAI Mission GPUs in use, and operational data-centre capacity in enterprise and edge sites, 2026
20%
IndiaAI Mission GPUs in use (reported, Rhodium)
“nearly 80%” reportedly unused; no source given
13%
Capacity in enterprise and edge sites used only by Indian entities
“less than 13%”; about 60% leased by hyperscalers
Source: Rhodium Group, Hyperscaler Heaven? · as of 27 October 2026 · Reported, not measured by TechBag. The 20% is the inverse of Rhodium's 'nearly 80%' unused
Where the capacity goes instead is also in Rhodium’s account. Yotta’s chief executive “estimates that nearly 80% of revenue already comes from foreign clients”, and the company “plans to allocate half of its $7 billion worth of NVIDIA GPUs purchases this year” to NVIDIA’s DGX Cloud Lepton marketplace under a US$1bn, four-year agreement.1 Rhodium’s reading is that India’s data centres “will primarily be used to scale global cloud ecosystems rather than serve the domestic market”. The government’s reading, in the same months, is of “affordable high-performance computing” that is “lowering entry barriers for Indian researchers, start-ups and innovators”.110 We report both; the hours and the GPU count above are the only measured numbers either side has published.
The capacity is rented through the IndiaAI Compute Portal. Startups and MSMEs qualify with DPIIT recognition, experience in AI or machine learning, and annual revenue of ₹50 lakh or funding of ₹1 crore; researchers with an h-index of 5 or more, AI publications in journals with an impact factor above 2.5, or 150+ citations; early-stage startups with four years of AI experience and a letter from the IndiaAI CEO or a joint-secretary-rank officer; and students, IndiaAI fellows and government entities on their own criteria.11
Five steps from sign-in to approved GPU hours, with the subsidy requested in the bill
How to apply for subsidised compute on the IndiaAI Compute Portal, as the portal's own page describes it
Step 1 of 5
1. Sign in
Log in through DigiLocker, e-Pramaan or Jan Parichay.
Source: IndiaAI Compute Portal · as of 2 November 2026 · Undated portal page. Approval is 'by PMEC as per SLAs'; the portal does not publish the SLAs
How we did this
Figures as of 2 November 2026The pledge chart is Rhodium Group’s Table 1 as published (we did not re-check each company’s announcement); the sum and shares are our arithmetic. GPU counts are quoted from the dated government documents listed, each as of its own date; the government publishes no monthly series, so the timeline shows statements, not a measured line. The 20% in the waffle is the complement of Rhodium’s “nearly 80%” unused, which the report gives without a source. The GPU-hours arithmetic divides 93.18 lakh hours by 45,000 GPUs and is an illustration, not a utilisation rate. The 40% subsidy share is our count of the allocation rows on IndiaAI’s page. Not used: a government factsheet said in coverage to be dated 29 October, which we could not find (the US$70bn and US$90bn figures are from PIB’s 14 September backgrounder), and a 100,000-GPU target for December 2026, for which we found no official statement. Global capacity and prices are in our separate GPU price trend and are not repeated here.
Spotted an error? Write to us; corrections are published at the foot of the piece.
Sources
Related on TechBag: the power India’s AI data centres will need, GPU rental prices worldwide, and the Google Cloud page.
Disclosure. TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.
Go deeper on TechBag
The weekly newsletter
Stay up to date, with one email a week
One email a week, written by us: what we published and what changed in enterprise technology, so you stay up to date. Nothing else.