75% of Indian businesses localise data as AI becomes core to strategy: Report – SME Futures

Home / News / 75% of Indian businesses localise data as AI becomes core to strategy: Report
Parul     May 1, 2025

As many as 75 per cent of companies in India are reshaping their infrastructure and location strategies based on data needs, marking a significant shift in how artificial intelligence (AI) is being adopted across the country, a new report said on Wednesday.
This signals India’s rapid rise as a digital hub in the Asia-Pacific region. Around 59 per cent of Indian companies already have a formal data strategy, outpacing many global counterparts, according to the Digital Realty report.
Indian companies are focusing on three major pillars while adopting AI — data localisation, sustainability, and structured data strategies.
The report highlights that AI and machine learning are seen as powerful tools to unlock the true value of data.
In fact, 44 per cent of businesses believe that AI is essential for this purpose. Sustainability is also emerging as a top priority.
About 60 per cent of companies say it is the most important factor shaping their AI strategies.
Moreover, 51 per cent of firms measure their IT success through green practices — showing a growing focus on responsible and environmentally friendly technology.
A notable 77 per cent of Indian firms have adopted distributed data models to maintain both compliance and performance.
This shift is helping them meet complex regulatory needs while ensuring smooth AI operations.
However, around 52 per cent of businesses are struggling to get meaningful insights from fragmented data.
In addition, 51 per cent say a lack of investment in strong data systems is slowing their AI journey, as per the report.
To address these issues, Indian companies are also working to make their IT infrastructure more energy efficient.
For example, 46 per cent now prioritise low Power Usage Effectiveness (PUE) to reduce energy use and meet their environmental goals.
© 2024, Polygon Media Pvt Ltd

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