India emerging as key hub for data centres, chip manufacturing: Moody's

Developed and emerging economies in East and Southeast Asia are becoming focal points for Artificial Intelligence (AI) investments, with India, Singapore, and Malaysia rapidly emerging as prime locations for data centre projects and semiconductor manufacturing, according to a report by Moody’s Analytics titled AI Is Beating the Odds. The report highlights that, despite a broader slowdown in cross-border investment and rising global trade tensions, capital spending on AI infrastructure is accelerating. This surge is driven by the need to address the widening gap between soaring AI demand and constrained global supply.
Moody’s noted that the United States (US) is leading in outbound AI investments, signalling the global expansion of major US-based technology firms. India, Singapore, and Malaysia are attracting substantial interest due to a blend of cost advantages, rising local demand, and supportive government policies. Specifically, India’s growing economy, robust digital talent pool, and strategic focus on tech infrastructure have positioned it as a key destination for both data centre development and chip production. As investors look for scalable, future-ready markets, these nations stand out as increasingly attractive hubs for AI-led growth and innovation.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.