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The Economic Times
AI-driven growth in India: AI to fuel India's tech services growth; public cloud spending to reach USD 17.5 bn in 2026: Report
According to Equirus Securities, India's technology services sector will experience substantial growth driven by AI, with public cloud spending projected to reach USD 17.5 billion in 2026, marking a 28.1% year-on-year increase. This growth is linked to the rapid demand for AI workloads and physical data center expansions. The report highlights the importance of AI-ready infrastructure and modernization investments, while India's talent pool and cost competitiveness position it favorably in the expanding market.
Act nowConfidence: HighShort term horizon
Published 17 Jul 2026, 04:30 UTC4 min read
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Summary
TL;DR
- Public cloud spending in India to reach USD 17.5 billion by 2026, a 28.1% increase.
- AI workloads expected to dominate data center demand by 2030.
- Increasing focus on Global Capability Centres among private equity firms.
- AI services market generating estimated USD 10-12 billion in revenue.
- Infrastructure-as-a-Service and Platform-as-a-Service leading cloud growth.
Interesting facts
- AI workloads projected to account for 70% of total data center demand by 2030.
- Private equity firms pushing companies to establish Global Capability Centres beyond just multinationals.