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5 Jun 2026Economy3 questions

Data Centre Specialist AirTrunk To Invest Rs 3 Lakh Crore In India: PM Modi

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Article summary

Hyperscale data centre specialist AirTrunk has announced plans to invest more than Rs 3 lakh crore (approximately $36 billion) in India by 2030, as announced by Prime Minister Narendra Modi, positioning India as a cornerstone of the company's global growth strategy. AirTrunk, backed by Blackstone and operating large-scale data centre campuses across the Asia-Pacific region, marks one of the single largest foreign direct investments in India's digital infrastructure sector. This investment aligns with India's National Data Centre Policy and the broader push under Digital India to make the country a global data hub, leveraging its growing internet user base exceeding 900 million and surging demand for cloud and AI computing. The announcement underscores India's competitive advantage in attracting hyperscale infrastructure investment, driven by favourable policy reforms, land availability, and a large skilled workforce. For UPSC, this signals the convergence of FDI policy, digital infrastructure governance, and India's ambitions in the global AI and cloud economy.

What this tests

recallTests whether you read the article and retained key facts.
1Q
applicationTests whether you can apply the concept to a new scenario.
1Q
analysisTests whether you can reason across multiple related facts.
1Q

Sample questions — answers revealed after test

EconomyRecallEasy

Q1. AirTrunk's announced investment of Rs 3 lakh crore in India's data centre sector is significant in the context of which of the following policy and strategic frameworks that collectively underpin India's digital infrastructure ambitions?

ANational Data Centre Policy (2020), IndiaAI Mission (2024), and the Digital Personal Data Protection Act (DPDPA) 2023
BNational Broadband Mission (2019), IndiaAI Mission (2024), and the Information Technology (Amendment) Act 2008
CNational Data Centre Policy (2020), National Cybersecurity Policy (2013), and the Personal Data Protection Bill (2019)
DIndiaStack framework, Digital India Act (2023), and the National Broadband Mission (2019)
Answer revealed after you submit the test
EconomyApplicationMedium

Q2. A state government is preparing a pitch to attract hyperscale data centre investments following AirTrunk's Rs 3 lakh crore commitment in India. Which of the following combinations of enablers would most directly address the critical operational requirements of hyperscale data centres, as identified in India's digital infrastructure framework?

AGuaranteed uninterrupted power supply, access to renewable energy procurement agreements, and single-window clearance for land and construction
BHigh mobile internet penetration, a large English-speaking workforce, and proximity to port infrastructure for hardware imports
CStrong IT services export track record, availability of skilled software engineers, and a robust startup ecosystem
DLarge agricultural land bank for data centre campuses, access to river water for cooling, and proximity to national highways for logistics
Answer revealed after you submit the test
EconomyAnalysisHard

Q3. With reference to India's emergence as a hyperscale data centre destination following AirTrunk's Rs 3 lakh crore investment commitment, consider the following statements: 1. Hyperscale data centres reduce latency for AI workloads by enabling domestic data processing, thereby reducing dependence on cloud infrastructure hosted in geographically distant foreign jurisdictions. 2. The Digital Personal Data Protection Act (DPDPA) 2023 prohibits all cross-border transfer of personal data, making domestic data centre investment mandatory for any company operating in India. 3. India's renewable energy target of 500 GW by 2030 is directly relevant to the sustainability calculus of hyperscale data centre operators who require large-scale green power procurement agreements. 4. Singapore and Malaysia are identified as India's primary competitors in the Asia-Pacific region for attracting hyperscale data centre investment. Which of the statements given above are correct?

A1, 3 and 4 only
B1 and 3 only
C2, 3 and 4 only
D1, 2, 3 and 4
Answer revealed after you submit the test