Indian Economy News

Lenovo to build, export AI servers from India

  • IBEF
  • January 12, 2026

Lenovo, a global tech behemoth, is shifting its India operations to become a key export base for its infrastructure division, with plans to launch the design and development of AI servers for export to other countries. This move signifies the increasing importance of India in the technology value chain in the global tech industry. During CES 2026 in Las Vegas, Lenovo Infrastructure Solutions Group Vice President and General Manager Mr. Scott Tease announced that the design for one- and two-socket AI servers, slated to be the workhorses of AI computing, will come from Bengaluru, with the final assembly to be done in Pondicherry for both Indian and foreign clients. Lenovo India has been selected for the government's IT hardware production-linked incentive (PLI) scheme, valued at Rs. 17,000 crore (US$ 1.91 billion).
Lenovo Infrastructure Solutions Group Vice President and General Manager Mr. Scott Tease pointed out that the first objective is to meet the AI infrastructure requirements in India, although with its talent for engineering, geographical advantages, and existing manufacturing facilities, the country has great potential for exporting server manufacturing in the future as well. He also referred to the cost issues that could be generated by high-performance computing for MSMEs and proposed the development of hybrid models for AI applications. According to these models, high inference computation could be performed by cloud as-a-service companies, while the lighter inference could be performed on relatively cheaper, domestically manufactured hardware.

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

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