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India emerging as prime destination for data centre projects, chip manufacturing: Moody's Analytics

19 Jun 2025 Evaluate

Moody's Analytics in its latest report ‘AI is beating the odds’ has said that the developed and emerging economies in East and Southeast Asia are key targets for AI investments, with India, Singapore and Malaysia rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing.

According to the report, even though trade and geopolitical tensions are knocking economies, soaring AI demand is outpacing supply. To close the gap, global investors are pouring capital into data centres and semiconductor projects.

Moody's Analytics further noted that the US share of outbound AI investment outpaces its inbound share, a sign that US tech giants are expanding their global footprint. Besides, it said that India’s growing economy and digital talent pool make it an attractive location for data centre providers and chip production.


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