'Greater GPU access, more investment in data centres', Pg13

Key Highlights:

• India and the US have agreed to significantly increase trade in GPUs and other goods used in data centers, along with expanding joint technology cooperation.
• India announced a tax holiday for foreign companies establishing data centers in India until 2047.
• The allocation for the IndiaAI Mission has been reduced to Rs 1,000 crore in 2026-27 from Rs 2,000 crore in the current fiscal year.
• Several US companies, including Google, Microsoft, and Amazon, have announced multi-billion dollar investments in setting up data centers in India.

Detailed Insights:

• The agreement addresses US demands for greater market access for its companies looking to establish data centers in India, including tax breaks and affordable access to resources.
• India aims to meet the growing compute needs of its startups building AI models and applications through increased GPU imports, primarily from American companies like Nvidia.
• The previous US administration had placed restrictions on the number of GPUs India could import, but the new agreement has set aside such export control measures.
• India's data center market is currently estimated at $10 billion, with projections indicating an addition of 795 MW of new capacity by 2027, reaching a total capacity of 1.8 GW.

Key Concepts Involved:

• GPU (Graphics Processing Unit): A specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device.
• Data Center: A dedicated space with infrastructure to house computer systems and associated components, such as telecommunications and storage systems.
• IndiaAI Mission: A government initiative to subsidize GPU access for startups and researchers developing AI models.