Artificial Intelligence (AI) enabled infrastructure, especially data centres, can bring a huge employment boom like the Internet era in India. NVIDIA CEO Jensen Huang has said that AI data centers will create millions of job opportunities not only in the tech sector, but also in manufacturing, supply chain and service industries. In a press conference during the ‘3D Experience World’ event held in Houston, USA, Huang said that the construction of one data center alone can provide direct employment to 5,000 to 10,000 people. This includes electricians, plumbers, construction workers and technical staff.
Many types of jobs will be created from data center
He said that real employment is not limited to those working only on the site. A large number of people also get work in the supply chain related to data center like pipe, concrete, design, architecture, project management. Apart from this, after the launch of the data center, new jobs are continuously created through its operation and the startups based on it.
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In a press conference during the ‘3D Experience World’ event held in Houston, USA, Huang said that the construction of one data center alone can provide direct employment to 5,000 to 10,000 people. This includes electricians, plumbers, construction workers and technical staff.
Many types of jobs will be created from data center
He said that real employment is not limited to those working only on the site. A large number of people also get work in the supply chain related to data center like pipe, concrete, design, architecture, project management. Apart from this, after the launch of the data center, new jobs are continuously created through its operation and the startups based on it.
Explaining with the example of Internet, Huang said that in India, Internet created tremendous employment at both upstream and downstream levels. He believes that AI and data centers can have exactly the same impact.
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Big relief to cloud companies in the budget
This statement has come at a time when a big announcement has been made for foreign cloud companies in the Union Budget 2026. According to the budgetary proposal, if a foreign company provides cloud services to the whole world by setting up data centers in India, then it will not have to pay any tax till 2047. This has been done to make India the ‘data hub’ of the world. This step of the government is being considered important towards making India a global data and AI hub. It has also been made clear in the budget that foreign companies will have to work through an Indian reseller or partner to provide services in India. Additionally, 15 per cent ‘safe harbor’ rule will be applied on Indian partner companies, up to a maximum of Rs 2,000 crore. That means if the company shows so much profit, the tax department will not raise any questions on their accounts.
With this proposal in the budget, big companies like Google, Microsoft and Amazon will invest more in India, which will increase jobs. It is estimated that the global data center market could grow from $430 billion in 2026 to more than $1 trillion by 2035. During this period, the fastest growth will be seen in the Asia-Pacific region. In such a situation, it is from the strategic perspective of the government to present India as a tax-neutral hub by 2047.
Estimated investment of Rs 7 lakh crore in India
In recent times, investment in the data center sector is increasing rapidly in India. Google in October announced to invest $15 billion (about ₹1.3 lakh crore) in an AI data center project in Andhra Pradesh. It is estimated that this project will generate about 1.88 lakh jobs. At the same time, Microsoft CEO Satya Nadella has also announced an investment of $ 17.5 billion (about ₹ 1.58 lakh crore) for the development of AI infrastructure in India.
Amazon also plans to spend ₹2.9 lakh crore in the data center sector in India. It is clear from this that data centers can become the backbone of India’s employment and digital economy in the coming years. Overall, investment in this sector in India is estimated to be about 90 billion dollars (about Rs 7.5 lakh crore).
