NTT DATA's Data Center Play in India: A Sustainable Bet on AI and Renewables

The rapid digitization of India's economy—projected to reach $1 trillion by 2030—has turned the country into a battleground for data center operators. Among the key players, NTT DATA stands out for its ambitious strategy to blend sustainable infrastructure with cutting-edge AI capabilities. Backed by a $10 billion global capital allocation and led by veteran executive Alok Bajpai, NTT is positioning itself as a top-tier investment play in India's data center boom.

The Bajpai Factor: Leadership in a Scaling Market

Alok Bajpai's appointment as Managing Director of NTT Global Data Centers India in July 2025 marks a pivotal shift for the firm. With over three decades of experience in operational restructuring and financial strategy—including stints at AdaniConneX and Infosys—Bajpai brings a rare blend of technical and financial expertise. His mandate is clear: accelerate India's data center footprint to meet soaring demand for AI-ready infrastructure and sustainable cooling solutions.

Under his leadership, NTT is doubling its data center capacity in India to 700 MW by 2027, up from 290 MW today. This expansion, funded by a $1.5 billion India-specific investment, includes nine new data centers in key hubs like Mumbai, Bengaluru, and Chennai. Bajpai's vision aligns with India's push to become a global AI hub, with the government targeting $100 billion in AI-related economic impact by 2030.

Energy Efficiency at the Core: LIC/DLC Tech and Renewables

NTT's competitive edge lies in its liquid immersion cooling (LIC) and direct contact liquid cooling (DLC) technologies, deployed at its Navi Mumbai facility. These systems reduce energy consumption by 30%, enabling a Power Usage Effectiveness (PUE) of 1.27—a gold standard in the industry.

The firm is also doubling down on renewables, with 100 MW of operational solar and wind energy powering its Mumbai and Bengaluru data centers. By 2030, NTT aims to achieve net-zero emissions for Scope 1 and 2 operations, using Power Purchase Agreements (PPAs) to secure 1.7 terawatt-hours of renewable energy annually. This commitment aligns with India's National Data Centre Policy, which mandates 40% renewable energy use by 2025.

The $10 Billion Backing: Fueling Global Ambitions, Local Growth

NTT's $10 billion global capital allocation (through 2027) is a game-changer. While much of the funding targets markets like the U.S. and Europe, India is a priority. The capital will finance:
- AI-optimized infrastructure: High-density server racks and advanced cooling systems to handle AI workloads.
- Sustainability initiatives: Waste heat recovery projects (e.g., repurposing 2MW of waste heat in Berlin's Marienpark district, soon to expand to India).
- Strategic partnerships: Collaborations with Indian tech giants to build localized AI ecosystems.

Why Investors Should Take Note

NTT's India play offers a compelling investment thesis:
1. Demand Surge: India's data center market is growing at a 20% CAGR, driven by cloud adoption, fintech, and AI.
2. Sustainability Leadership: Its LIC/DLC and renewable commitments position it ahead of rivals like AWS and Google in ESG metrics.
3. Bajpai's Track Record: His ability to scale infrastructure while managing costs (as CFO, he optimized NTT's financial strategy) reduces execution risk.

While NTT's stock has underperformed the Nikkei in recent years, its India-focused growth could catalyze a re-rating. The firm's 2023 sustainability report highlights a 25% emissions reduction versus 2021 baselines—a metric that increasingly matters to ESG-driven investors.

Risks and Considerations

• Regulatory Hurdles: India's strict data localization laws could limit cross-border scalability.
• Competition: Players like EdgeConneX and Digital Realty are also ramping up Indian investments.
• Execution: Scaling LIC/DLC at hyperscale requires flawless project management.

Final Take: A Long-Term Play in India's Digital Future

NTT's India pivot isn't just about data centers—it's a bet on the foundational infrastructure of India's AI and renewable energy revolutions. With Bajpai at the helm, a $10B war chest, and technologies that slash costs while boosting sustainability, NTT is well-positioned to dominate a market where 80% of enterprises plan to adopt AI by 2026.

For investors seeking exposure to India's digital economy without overpaying for speculative plays, NTT offers a rare blend of scale, profitability, and ESG credibility. The firm's stock—a laggard in Japan—could finally shine as its India story gains traction.

Investors: This is a data center play with a purpose—and a profit margin.