GIFT City, Gujarat is set to mark another milestone as the state prepares to build its first Artificial Intelligence (AI) Data Center—an advanced 40MW vertical mega-facility designed to support India’s rapidly growing demand for high-performance AI computing. The project, expected to begin its tendering process soon, is positioned to transform GIFT City into one of the most powerful AI-ready digital hubs in Asia, strengthening India’s global footprint in next-generation digital infrastructure.
Sources close to the development confirm that the data center will be constructed according to the master plan of GIFT City (Gujarat International Finance Tec-City), India’s only operational smart city and financial services hub. With its world-class infrastructure, international regulatory environment, and strong technology ecosystem, GIFT City provides an ideal ground for a next-generation AI-optimized data center.
A Major Leap for India’s AI and Digital Infrastructure
India is experiencing an unprecedented surge in AI adoption across industries—from banking and fintech to manufacturing, logistics, and e-commerce. High-performance computing (HPC) has become the backbone of modern AI innovations, and local capacity is crucial to reduce dependency on foreign data centers.
The upcoming 40MW AI Data Center in GIFT City is designed to address exactly this gap. According to officials, the facility will be built in phases and scaled based on demand growth, technology upgrades, and infrastructure readiness.
Unlike traditional data centers that focus on general workloads, this facility will be tailor-made for AI and ML-intensive operations, including:
- Large-scale model training
- Real-time inference
- Deep learning applications
- Big-data analytics
- High-performance enterprise computing
This will allow Indian enterprises, multinational companies, and research organizations to run complex AI workloads locally with lower latency, faster speeds, and improved data sovereignty.
Vertical Architecture for High Efficiency and Low Land Footprint
In a strategic shift from conventional horizontal layouts, the new data center in GIFT City will adopt a vertical architecture. This approach delivers several advantages:
Efficient land usage
GIFT City is designed as a compact high-rise financial district. A vertical data center aligns with its infrastructure philosophy, allowing maximum capacity with minimal land disturbance.
Lower energy consumption
Vertical systems improve cooling efficiency and power distribution, two of the biggest cost components in data centers.
Higher operational efficiency
Centralized cooling, reduced cabling distances, and optimized airflow systems significantly reduce operational overheads.
Sustainable and future-ready model
As AI workloads increase, vertical formats allow expansion without heavy environmental impact—supporting India’s sustainability commitments.
With GIFT City already equipped with reliable power, global-grade connectivity, and advanced urban infrastructure, the data center’s vertical model becomes even more effective.
AI-Optimized Infrastructure: Liquid Cooling, HPC Systems & Global Standards
Building an AI-grade data center is significantly different from traditional data centers. AI clusters require ultra-dense GPU racks, high-performance interconnects, and advanced cooling systems.
The upcoming GIFT City facility will feature:
Liquid Cooling Systems
AI servers generate far more heat than conventional server infrastructure. Liquid cooling is essential to manage temperatures efficiently, reduce energy consumption, and prolong hardware lifespan.
High-Density Power Systems
AI racks require 2–3× more power per rack compared to standard cloud racks. The 40MW capacity will support advanced GPU clusters and hyperscale AI compute workloads.
Global Standard Infrastructure
The center will be developed according to Tier-IV and international best practices, ensuring:
- 99.995% uptime
- Fully redundant systems
- Zero downtime maintenance
- Maximum security and reliability
This will allow the facility to serve critical industries such as fintech, global banking, quantum computing research, and enterprise-grade AI deployments.
Boost for Fintech, GCCs, and the Global BFSI Sector
GIFT City is already home to:
- Leading fintech companies
- Global Capability Centers (GCCs)
- International banks
- Three live international exchanges
- India’s only international bullion exchange
The new AI data center will accelerate digital transformation across these sectors.
Key impacts include:
Real-time transaction processing
Financial institutions in GIFT City handle billions of dollars of transactions daily. AI can improve speed, accuracy, and efficiency.
AI-driven fraud detection
Advanced AI models can detect anomalies and suspicious activities within milliseconds.
Regulatory and compliance automation
Global regulations require continuous monitoring and reporting—AI can streamline these processes significantly.
Increased investment flow
Experts believe the new data center will attract:
- More global fintech players
- New GCCs from Fortune 500 companies
- BFSI enterprises expanding their AI capabilities
- AI startups and enterprise AI solution providers
This positions GIFT City among the world’s leading digital finance hubs, comparable to Singapore, Dubai, and Dublin.
GIFT City: India’s Fastest-Growing Mega Tech-Fin Hub
GIFT City has rapidly developed into a world-class financial and technology ecosystem due to:
- Global-standard infrastructure
- International regulatory frameworks
- High-rise smart city planning
- Cutting-edge data connectivity
- Strong government support
- Presence of international exchanges
The addition of a dedicated AI Data Center strengthens its identity as India’s most advanced tech-fin hub.
A Magnet for Global and Domestic Investors
With AI and ML workloads rising exponentially worldwide, demand for hyperscale and AI-ready data centers is at an all-time high. Global giants like Google, Microsoft, Amazon, and Nvidia are investing billions into similar infrastructure worldwide.
The GIFT City AI Data Center is expected to attract:
- Indian enterprises requiring secure, local AI compute
- Multinational corporations setting up GCCs
- AI model development companies
- Cloud service providers
- GPU cluster operators
- Venture-backed AI startups
- Research institutions
The facility’s strategic location—inside the GIFT-IFSC ecosystem—gives it direct access to global capital and international financial markets.
Why GIFT City Is the Ideal Location for India’s First AI Data Center
Stable and robust power supply
Critical for uninterrupted AI compute operations.
World-class telecom and fiber connectivity
Essential for high-speed data exchange.
Special economic and tax incentives
Attractive for global companies seeking cost-efficient AI operations.
Presence of international institutions
Provides a ready pool of enterprise clients.
Smart-city infrastructure with vertical scalability
Reduces long-term expansion barriers.
All of these factors position GIFT City as India’s most efficient and globally competitive location for hyperscale AI development.
Also read: Reliance Jio and Google Forge Landmark AI Alliance to Accelerate India’s Digital Future
Next-Generation Digital Hub for India, Asia, and the World
Once operational, the GIFT City AI Data Center is expected to evolve into:
- India’s largest AI-focused compute hub
- A global center for training large AI models
- A preferred base for BFSI+AI innovations
- A high-density cloud and HPC zone
- A strategic asset for India’s digital economy
Given the worldwide race for AI dominance, this project significantly boosts India’s competitiveness and accelerates the nation’s ambition to become a global AI powerhouse.
Also read: Google to Invest15 Billion Dollar on AI Hub in India: CEO Sundar Pichai Informs PM Modi
Conclusion: GIFT City’s AI Leap to Shape the Future of Digital India
Gujarat’s first AI Data Center in GIFT City is more than just an infrastructure project—it is a transformative step that strengthens India’s digital backbone, accelerates innovation, and empowers industries across finance, technology, and enterprise sectors.
With its 40MW capacity, vertical architecture, liquid cooling systems, and global-grade standards, the facility will set a new benchmark for AI-ready infrastructure in India and Asia.
As demand for AI and ML workloads continues to surge worldwide, this state-of-the-art data center positions GIFT City as a global leader in next-generation technology, attracting investment, innovation, and world-class talent.
India’s AI future will be built on powerful digital foundations—and GIFT City is now at the center of that future.
