India Government to Set Up Three AI Data Centres in West Bengal

West Bengal is set to take a significant step forward in India’s artificial intelligence journey, with the Union Government announcing plans to establish three AI data centres in the state. The initiative will be implemented in collaboration with state governments and the private sector, reinforcing India’s push to strengthen its digital and AI infrastructure.

The project will involve a total investment of ₹20 crore, of which ₹8 crore will be contributed by the Union Government. The remaining investment is expected to come through partnerships with state authorities and private players. The announcement was made by S. Krishnan, Secretary, Union Ministry of Electronics & Information Technology (MeitY), during a special session titled “Unleashing the Power of AI in Business”, organised by the Merchants’ Chamber of Commerce & Industry.

Strengthening India’s AI Ecosystem

Highlighting India’s progress in artificial intelligence, Krishnan noted that the country already has a strong AI foundation, with around 6,000 datasets actively driving AI-based models across sectors. He pointed out that nearly 60 per cent of AI adoption in India is currently focused on business development, a proportion that is higher than in many other countries. This trend reflects the growing role of AI in improving efficiency, decision-making, and scalability for businesses.

Krishnan emphasised that micro, small and medium enterprises (MSMEs) stand to benefit significantly from AI adoption. He underlined the importance of chambers of commerce and industry bodies in enabling smaller businesses to understand, adopt, and implement AI-driven solutions.

Bengal’s Opportunity as an AI Growth Hub

Industry leaders believe that West Bengal is well-positioned to capitalise on this development. Debashis Sen, Founder and Director of NBC Ltd, highlighted that MSMEs often see the highest return on investment from AI adoption, making AI a critical growth lever for states with strong entrepreneurial ecosystems. He added that West Bengal’s rich intellectual capital and talent pool could allow AI to act as a powerful economic multiplier for the state.

The presence of premier institutions such as IITs and other leading educational organisations further strengthens Bengal’s position. These institutions are already working on foundational AI models, contributing to India’s ambition to build scalable and impactful AI solutions through frugal innovation.

Looking Ahead

Adding to the momentum, Krishnan also announced that the India AI Impact Summit 2026 will be held later this year, reinforcing India’s ambition to emerge as a global hub for AI applications and real-world use cases.

With the announcement of three AI data centres, West Bengal is poised to play a more prominent role in India’s AI-driven growth story. The initiative not only signals increased investment in advanced technology but also opens new opportunities for businesses, startups, and MSMEs across the state.

At Kolkata Calling, we continue to highlight such positive developments that shape the future of Bengal’s economy, innovation ecosystem, and digital growth.