The recent budget allocated Rs 500 crore for a Centre of Excellence (CoE) in AI, which will support research and innovation in artificial intelligence.

The Union Budget 2025 has included a number of measures that will help the data center sector in India expand. These initiatives, which place a high priority on talent development, infrastructure, and technology developments, are meant to solidify India's standing as a major global data hub.

The National Framework for Global Capability Centers in tier-II cities is a noteworthy feature. This project will increase the infrastructure and skill pool in developing areas, making them desirable sites for data center installations. This move might attract new investments, increase demand for data storage solutions, and improve regional connectivity, as approximately 80% of international companies have not yet established GCCs in India.

The budget also allots Rs 500 crore for the establishment of an AI Center of Excellence, which would foster AI research and development. In data centers, this will be essential to the advancement of AI-driven data analytics and automation, increasing scalability and efficiency.

The government is boosting IIT infrastructure, adding 6,500 seats, and launching 10,000 scholarships for advanced research to foster long-term talent development. This will contribute to the development of a highly qualified staff, which is necessary for large-scale data center management and AI innovation.