AI Affairs, home

Sunday 4 October 2026

Government

India plans government-controlled AI compute pool as GPU costs rise

The plan includes a 3,000-GPU installation with C-DAC and a proposed UAE agreement for an 8-exaflop supercomputer to be deployed in India.

Blue-lit server racks with visible drives and green status lights
Photo: panumas nikhomkhai via Pexels

India’s central government is moving to build a government-controlled AI compute pool of 10,000 GPUs as costs rise, The Hindu Businessline reported on 2 October, citing sources. The government is working with the Centre for Development of Advanced Computing (C-DAC) to install 3,000 GPUs.

The government is also finalising an agreement with the UAE for an 8-exaflop AI supercomputer to be deployed in India. The reported estimate puts its computing capacity at the equivalent of about 10,000 GPUs. G42 and Cerebras are developing the system with C-DAC and the Mohamed bin Zayed University of AI. A senior government official told The Hindu Businessline that India would own it as a “UAE government gift”.

The proposed public pool would sit alongside compute sourced from private providers. Separately, IBM and Yotta have made a sovereign AI agent platform available in India, while Microsoft has opened a cloud region in Hyderabad. The government is preparing further bids for computing capacity, The Hindu Businessline reported.

Topics: Data centres, Inference, Public sector, Sovereign AI