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Powering progress: Building an AI-ready data center blueprint

Introduction

Artificial intelligence (AI) is transforming industries, making robust digital infrastructure an important component for enterprise growth. Recognizing this, a technology provider sought to enter India’s data center market, turning its AI ambitions into an operational reality. To support this goal, Deloitte India helped the client design an AI-enabled data center, offering technical project management, financial and business strategy, and regulatory and policy advisory support.

Providing a data-driven path forward to translate AI ambitions into an operational reality.

The situation

The provider’s goal was twofold: to address rising in‑house graphics processing unit compute needs and build a cloud infrastructure for AI products and services. To achieve this, the client required advisory support for the design of the AI-enabled data center, including technical project management, financial and business strategy, and regulatory and policy considerations.

The solution

Deloitte India collaborated with the client to deliver a multidisciplinary advisory approach, developing an effective strategy that translated the client’s vision into practical, implementation ready actions across four core areas:

  • Technical project management: The team created a framework to assess data center locations, looking at incentives and operational factors like power and risk. This included conducting a site visit, developing a floor plan, and validating the specifications for active and passive infrastructure—all in collaboration with shortlisted vendors for hardware and software procurement. Additionally, the team developed a detailed project plan and risk assessment.
  • Financial and business strategy: The team built financial models for different data center sizes, complete with benchmarking costs and projected revenues, outlining capital expenditure and operational expenses with funding sources, and a go-to-market strategy.
  • Regulatory support and incentives assessment: The team both analyzed and recommended license requirements as well as tax and regulatory incentives across various regions.
  • Policy paper and thought leadership: The team facilitated empanelment discussions with India’s Ministry of Electronics and Information Technology (MeitY) and drafted a public policy framework outlining strategic objectives, policy priorities, stakeholder engagement, and governance. They also created white papers on AI market evolution, policy shifts, and global regulatory changes.

The impact

The collaboration equipped the client with a clear, actionable, and data-driven path forward. Deloitte delivered a detailed project plan outlining timelines and risk mitigation measures as well as detailed financial models. These models evaluated various build-out scenarios, providing a clear cost-benefit analysis that empowered the client to make strategic and confident investment decisions.

The client also received a detailed project report on incentives and regulatory requirements. With support for their MeitY empanelment application and a clear policy advocacy strategy, the client now has a structured plan to move forward with its AI data center and enter the market.

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