Major US technology firms including Amazon, Microsoft, and Google are delaying large-scale data centre leasing in India as trade tensions between New Delhi and Washington escalate, according to a CNBC report.
These hyperscalers—responsible for nearly 30% of India’s data centre demand, projected to reach 35%—have paused new deals for over two months, said Alok Bajpai, MD of NTT Global Data Centers India. Industry experts expect reassessments in the next three to six months.
The slowdown follows a series of US trade actions, including 25–50% tariffs on Indian goods and a $100,000 visa fee on new H-1B applications, moves that have strained bilateral relations and disrupted global supply chains.
Rising equipment costs and regulatory uncertainty have further complicated long-term project planning.
Despite the pause, India’s data centre outlook remains strong.
The sector is expected to attract ₹1.6–2 trillion in investments over the next seven years, with total capacity forecast to triple from 1.2 GW to 3.5 GW by 2030.
However, new contracts increasingly include clauses for law changes and phased expansions, signalling cautious optimism amid geopolitical headwinds.
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