The rising availability of AI tools including DeepSeek causes data processing volume to grow which necessitates stakeholders to build sophisticated data centers.
Data centre infrastructure providers in India predict that DeepSeek's emergence as China's affordable AI platform will boost the necessity for additional centers even though it will not decrease the demand. Organizations operate data centers as facilities which provide housing for their essential applications and data. The government announced during January 30 that DeepSeek would soon function from Indian servers to solve privacy problems with data security related to the Chinese AI platform.
The Chinese tech firm DeepSeek has garnered significant media attention with their AI model R1 supplanting ChatGPT to achieve the leading position among free apps in Apple's Appstore thus contesting US market control in the AI domain. “We’re very excited for India. Cheaper models for inference are the need of the hour. This will only grow data centres and make AI accessible to every Indian,” said Darshan Hiranandani, CEO of Hiranandani Group. He believes that these developments will expand data centers to benefit every Indian citizen with access to AI technology. Anant Raj Cloud as a subsidiary of the listed firm Anant Raj seeks to capitalize on DeepSeek opportunities for business expansion.
DeepSeek's launch should enhance India's data center demand which already keeps growing at a rapid pace. DeepSeek artificial intelligence models necessitate extensive computing power together with storage capabilities thus creating increased requirements for data centers that offer high-performance and scalability along with energy efficiency according to Amit Sarin Managing Director at Anant Raj Limited. The present data centre market share in India stands at 1% whereas the country generates 28% of the world's data despite its status. The sector demonstrates extensive growth opportunities according to his explanation.
The increasing position of India as a global technology hub will drive businesses to develop infrastructure for AI applications thus requiring more investment in data centers. National demand for innovative data centers that offer security will grow exponentially due to regulatory data-location policies together with cloud services expansion according to Maini. AI systems act as major sources and processors of data that increases at an unprecedented rate worldwide. Data centers will require more updates due to the rising availability of affordable AI tools along with expanding data processing volumes.
Sarin indicated that “this market direction matches our company strategy which enables us to capitalize on rising product need.” Jatin Shah from Colliers India as the Chief Strategy Officer emphasized that DeepSeek will optimally operate data centers through improved performance and decreased operational costs while enhancing functionality. DeepSeek equipped its AI-based platform with features to scale up alongside data centre expansion so operations can optimize resources and preserve their performance capabilities.
DeepSeek brings a significant cost reduction to the artificial intelligence (AI) field through its redefinition of data centre operations. Shrinivas Rao, FRICS, CEO of Vestian, predicts that the Indian data centre sector will adapt energy-efficient designs to reduce operating expenses since DeepSeek employs balanced loading methods. According to CBRE the Indian data center market will grow to 2,070 megawatts (MW) capacity by the end of 2025. The existing data centre capacity in the country totals 1,255 MW and analysts forecast this will reach around 1,600 MW before 2024 ends.