INVESTMENT BRIEF  ·  COMPUTE MANUFACTURING  ·  2026

The $444B server boom has
one wide-open pocket.

Servers are a $444B market growing 80% a year (IDC, 2025). The fastest-opening, least-localized share of that demand is India. This is the case for taking it from Hyderabad.

SEE THE FULL CASE →
$20B in approved semiconductor projects
$36.6B data center market by 2035
700K GPUs to be deployed within 5 years
Macro photograph of a circuit board
01 · WHY INDIA, WHY NOW

20% of the data, 3% of the capacity

India generates a fifth of the world's data but hosts a sliver of its data centers. Every megawatt of the buildout needs servers, switches, and accelerators, and nearly all of them are imported today. That is your addressable market, served from outside the country.

20%
of the world's data is generated in India (Economic Survey 2025-26)
3%
of global data center capacity is hosted here; closing the gap means ~8 GW by 2030
COMMITTED OPERATOR CAPEX

Microsoft · $17.5B

Committed to India cloud and AI infrastructure buildout.

Google · $15B

Data centers and AI capacity, anchored by a gigawatt-scale Visakhapatnam hub.

AWS · $40B+

Region expansion nationwide, including $7B+ in Hyderabad alone.

Reliance & Adani · $210B

Domestic giants building gigawatt-scale AI campuses.

02
02 · THE DEMAND CURVE

AI is rewriting India's infrastructure map

Compute demand is compounding faster than capacity can be built, and nearly everything filling these halls is imported: duty, long lead times, and a growing build-local preference working against imports. The numbers:

$23B GPU infrastructure opportunity
650–700K GPUs forecast for India's data centers over the next 5 years.
100K GPUs targeted by the IndiaAI Mission
By end-2026 under the $1.25B program; 38K+ GPUs already deployed at subsidized rates.
$39.5B committed by hyperscalers
Microsoft ($17.5B), Google ($15B), and AWS ($7B) for India's cloud & AI infrastructure.

Localizing assembly protects margin against tariffs, cuts lead time to Indian customers, and qualifies you for buy-local procurement. It is also the China+1 diversification your board is already asking about.

DATA CENTER CAPACITY (GW)
1.15
2.0
4.5
9.0
20242027E2030E2030 AI case
Capacity
03
03 · THE LOCATION

Hyderabad is the center of gravity

01AWS
$7B

Hyperscale data center expansion across Telangana.

HORIZON14 YEARS
02MICROSOFT
150 MW

Hyderabad cloud region expanded with new GPU clusters.

WORKLOADAZURE OPENAI
03NTT DATA + NEYSA
$1.18B

AI-first data center cluster built for dense GPU compute.

CAPACITY400 MW · 25K GPUS
04UPC VOLT
$600M

AI-ready campus rising in Bharat Future City.

CAPACITY100 MW
WHY MANUFACTURERS WIN HERE

Deep silicon talent

Qualcomm, NVIDIA, AMD, Micron, Microchip & NXP already run major operations here.

Ready industrial land

900+ acres of dedicated ESDM clusters minutes from the international airport.

Stacked state incentives

20–25% capital subsidy, up to 50% land discount, 100% stamp duty reimbursement.

Power that holds

100% electricity duty exemption for 5 years; reliable grid plus renewable supply.

04
04 · THE MOMENTUM

The OEM playbook has already started

Evaluating · Feb 2026

Evaluating local AI-server manufacturing (Feb 2026), in-house or via partners, while staffing up in India as AI deployments accelerate.

India demand served · ~85%

Sriperumbudur facility already builds servers, desktops, and notebooks in-country for the Indian market.

Manufacturing since 2021

Manufactures its device portfolio with Flex near Chennai and is expanding local sourcing of subcomponents.

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THE WINDOW

No global OEM yet builds AI servers at scale in India. DPDP data-localization phases in through 2027, PLI 2.0 and ECMS incentives are live, and the import-fed chassis market compounds 28–32% a year to $1.1–1.5B by 2035. The first to localize sets the cost base; the second competes on someone else's terms.

05
05 · THE PARTNER

Built by people who already build for the best

Resolute is a 28-year EMS group in Hyderabad. A phased ramp: starting with what ships today, scaling to full AI-rack integration.

Proven at global volume

SAMSUNG · XIAOMI

Data-center switches and high-volume electronics across 9 SMT and 9 FATP lines.

In the right city

HYDERABAD

NTT and Neysa's 400 MW, 25,000-GPU cluster and Microsoft's expanding Azure region next door.

Your IP protected

NDAs · SECURED LINES

Full MES traceability, operating under your quality and IP controls.

Certified and clean

ISO ×3 · CLASS 10K

ISO 9001, 14001, and 45001, with a Class-10,000 clean room for sensitive assembly.
06
06 · THE ECONOMICS

Where a dollar of capex works hardest

Electronics assembly line
INDIAADVANTAGE
SKILLED ASSEMBLY LABOR
~$4.50 per hour
CAPEX SUPPORT
Up to 50% central + 20–25% state
PAYBACK PERIOD
5–6 years
EXPOSURE
Policy tailwinds; localizing removes tariff risk
Container ships at an export terminal
CHINA
SKILLED ASSEMBLY LABOR
~$5.20 per hour
CAPEX SUPPORT
20–30% lower setup, fading subsidies
PAYBACK PERIOD
Compressed by overexposure
EXPOSURE
Tariffs, export controls, geopolitics
Data center server racks
USA
SKILLED ASSEMBLY LABOR
Highest-cost tier
CAPEX SUPPORT
Setup runs 2–3× higher overall
PAYBACK PERIOD
8–10 years
EXPOSURE
Stable, but heavy on labor and compliance
Straight talk: India assembly carries a modest premium versus established hubs today. PLI 2.0 (servers eligible), ECMS component incentives, and recent duty cuts close the gap, and localization removes tariff and logistics exposure on the imports it replaces.
Sources: industry cost benchmarks 2025; India Semiconductor Mission & state policy terms; reference project model.
07
07 · THE ENTRY MODEL

Phase 1: a de-risked $10.2M beachhead

CAPEX OPEX
$10.2M
Phase 1 outlay
CAPEX $6.6M: SKD line, equipment, facility, licensing
OPEX $3.6M: year-1 manpower, training, utilities, materials
Click segments to isolate
PARTNER EQUITY FROM
$1.5M

enters only after a joint NPI pilot, on your quality and IP terms, proves cost and timeline targets.

Local partner carries the remaining capex and opex.

WHAT THE OEM PARTNER GETS

Your IP stays yours

You keep design, silicon, and IP. Assembly, test, and integration run to your spec, under your controls.

Zero capex liability

All capital and operating expenditure carried locally; phased bank-backed disbursement.

Governance seat

Strategic oversight of operations, suppliers, and certifications (ISO, BIS, IPC-610), with full MES traceability.

Pilot before scale

A joint NPI pilot on one product line with clear cost and timeline gates; 12-month path to go-live.

08
08 · THE ROADMAP

From decision to exports in 24 months

Months 0–6 Months 6–12 Month 12 Months 13–24
Months 0–6
BUILD

Facility buildout, cleanroom & ESD infrastructure, technical workforce hiring and training.

Months 6–12
PILOT

SKD trial runs, parametric testing, ISO and BIS audit track, supplier qualification.

Month 12
GO-LIVE

Commercial production begins; incentive disbursement filed under the semiconductor mission.

Months 13–24
SCALE

Vertical integration, R&D lab, exports to emerging markets under co-branding.

India's compute buildout is happening. The first movers set the terms.
Let's build in Hyderabad.
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