The company in a statement said the investment would support India's ambitions to become a global hub for cloud computing and artificial intelligence (AI), while creating jobs, strengthening local supply chains and attracting technology investments.
Backed by investment firm Blackstone Inc. and the Canada Pension Plan Investment Board, AirTrunk said the proposed investment programme would rank among the largest digital infrastructure initiatives currently under consideration in India.
The announcement follows AirTrunk's entry into the Indian market through its acquisition of Lumina CloudInfra in April. The acquisition gave the company a development pipeline of 600 megawatts (MW) across Mumbai, Chennai and Hyderabad.
In a post on X, Modi said India's digital infrastructure journey was "gathering remarkable momentum" and described AirTrunk's announcement as one of the largest proposed investments in the country's digital infrastructure ecosystem.
"Such investments will strengthen India's position as a global hub for cloud computing and AI, while generating employment opportunities, supporting local supply chains and accelerating innovation-led growth," Modi wrote. "It is clear that the future of the world's digital economy is increasingly being shaped in India."
The investment is being spearheaded by AirTrunk founder and chief executive Robin Khuda, a Bangladeshi-born Australian entrepreneur who built the company into one of the Asia-Pacific region's largest hyperscale data centre operators.
Khuda remained at the helm of the business after its $16 billion (A$24 billion) acquisition by a Blackstone-led consortium in 2024.
"India had emerged as a highly attractive destination for long-term digital infrastructure investments," Khuda said in a statement.
"Capital is mobile, and India is creating the conditions for it to thrive," he added. He also cited government-backed AI initiatives, a large technology talent pool and access to renewable energy as key factors behind the company's expansion plans.
Photo: Narendra Modi/X
During a visit to India, Khuda met federal and state government representatives, including officials in Maharashtra and Andhra Pradesh, to discuss investments in cloud and AI infrastructure.
According to the company, discussions focused on issues such as power availability, renewable energy access, sustainable water supplies, talent development and faster regulatory approvals needed to support large-scale AI-driven growth.
AirTrunk's proposed expansion comes as India pushes ahead with a series of technology-focused initiatives, including the IndiaAI Mission and the India Semiconductor Mission, aimed at strengthening domestic digital infrastructure and attracting global investment.
Khuda in a statement said Prime Minister Narendra Modi's digital economy agenda had helped position India as a leading destination for technology investment.
"India has the scale, talent, and ambition required to become a global AI powerhouse," he said.
AirTrunk said its planned 5GW pipeline would generate significant economic activity through construction, operations and supply-chain development while supporting the next phase of AI and cloud adoption in India.
The company added that countries capable of building large-scale digital infrastructure will be better positioned to attract investment, innovation and high-value jobs as global AI adoption accelerates.