In its federal budget for the current year, the Indian government unveiled a tax exemption policy extending up to two decades. This policy targets foreign-funded data center operators in India that cater to overseas clients. The objective is to entice global tech behemoths to establish next-generation artificial intelligence infrastructure within India's borders.

In recent times, India has rolled out a series of supportive measures. These include designating data centers as 'infrastructure' and easing land use regulations. As cloud computing and artificial intelligence experience explosive growth, the global appetite for data centers has soared. Both Amazon and Microsoft have recently declared a combined extra investment of $52 billion in the Indian market. Additionally, the Indian government intends to streamline transfer pricing regulations, thereby enabling domestic companies to more seamlessly bolster global cloud services.