Telcos Pivot to AI-Ready Data Centres to Drive Enterprise Growth

India’s telecom operators are preparing for a major strategic shift, moving beyond traditional network expansion toward AI-ready data centres, edge infrastructure, and cloud platforms. Industry executives say telcos plan to invest over ₹1 lakh crore in AI-driven digital infrastructure over the next two to three years, aiming to significantly increase enterprise revenues and reshape their long-term growth trajectory.

This transition comes as leading operators move past the peak capital expenditure phase of their 5G rollouts. According to Aditya Khaitan, Partner at Deloitte India, 20–30% of telecom investment budgets by FY27 are expected to be redirected toward building AI-ready data centres, edge computing infrastructure, and cloud-native functions. The shift will be more pronounced among the top two telecom players, which now have greater financial flexibility after heavy 5G investments.

The strategic pivot could substantially alter revenue composition. Enterprise services currently contribute about 15–30% of total telecom revenues. However, with growing demand for cybersecurity, cloud computing, Internet of Things (IoT) platforms, and AI-powered enterprise solutions, B2B revenues could rise to 30–40% of overall income in the coming years.

The scale of investment is significant. According to Shilpa Malaiya Singhai, Managing Director at Alvarez & Marsal India, Indian telcos have committed more than ₹2.1 lakh crore toward AI-focused data centre development over the next two to three years. These investments are expected to add 4–5 gigawatts of capacity to India’s digital infrastructure.

Bharti Airtel, for instance, announced plans in late 2024 to invest around ₹75,000 crore to expand its Nxtra data centre capacity from 240 MW to 400 MW. Airtel has also partnered with Google to develop a 1 GW AI hub in Visakhapatnam. Meanwhile, Reliance Jio is planning a massive 3 GW AI-focused data centre in Jamnagar.

Together, these moves signal a decisive transformation of Indian telcos into full-scale digital infrastructure and enterprise technology providers.