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Indian Enterprises Shift Toward Local Cloud Providers Amid Sovereignty Push
Some Indian companies are moving their computer data from large global cloud companies to an Indian provider called ESDS.
ESDS says banks, oil companies, pharmaceutical businesses and other enterprises are interested in this change.
One reason is that Indian rules encourage important data to stay inside India.
ESDS says local providers can be attractive if they offer similar services and meet all required standards.
The company plans to buy 1,500 powerful Nvidia computer chips called GPUs.
These chips would be installed in data centres in four major Indian cities.
ESDS believes future artificial-intelligence factories will need wide, low-rise buildings rather than tall buildings.
Its CEO also wants the government to make it easier for foreign companies to build AI facilities in India.
Oil PSUs, banks, pharmaceutical companies and other enterprises are reportedly moving services from hyperscalers to ESDS Software Solutions.
ESDS CEO Piyush Somani linked the shift to Indian data-localisation requirements and growing compliance obligations.
The company plans to purchase 1,500 Nvidia GPUs and deploy them across India’s four largest metropolitan cities.
Somani said future AI facilities will favor horizontal data centres over multi-storey structures designed for older CPU systems.
He urged the government to address jurisdiction, FEMA regulations and customs issues that may deter foreign AI-factory investment.
- Who
- ESDS Software Solutions, its CEO Piyush Somani, and Indian oil, banking, pharmaceutical and enterprise customers.
- What
- Businesses are reportedly shifting some cloud services from global hyperscalers to local provider ESDS, while ESDS plans a 1,500-GPU purchase.
- Where
- India, including its top four metropolitan cities, where ESDS plans to deploy the GPUs.
- When
- The report was published on September 28, 2026; Somani discussed the company’s expected opportunity over the next five to 10 years.
- Why
- Data-localisation rules, regulatory compliance and a broader push for digital sovereignty are encouraging companies to consider local cloud providers.
Key facts
- Company
- ESDS Software Solutions
- Executive quoted
- Piyush Somani, ESDS CEO
- Reported customers shifting
- Oil PSUs, banks, pharmaceutical companies and other enterprises
- Relevant requirements
- The article cites the Reserve Bank of India’s data-localisation mandate and the Digital Personal Data Protection Act.
- Planned GPUs
- 1,500 Nvidia GPUs, identified by the company as B300, GB300 or Vera Rubin models
- Planned deployment
- The top four metropolitan cities in India
- Data-centre strategy
- ESDS plans to lease horizontal data centres rather than invest in multi-storey structures
Quotes
Piyush Somani
CEO of ESDS Software Solutions
“India is the only country that can immediately provide 48 to 50 gigawatts of power for AI actors. America cannot do that. China has reasons, because Nvidia cannot export to China and Southeast Asia or Europe doesn’t have enough power left now with them. So only India is the probable capital that is going to take care of AI”
thehindubusinessline.com
“The demand from our customers is for the Nvidia B300, GB300, Vera Rubins only. 1500 GPUs is a very small quantity. Any OEM should be able to fulfil that in a timeline of 100 days.”
thehindubusinessline.com
Sources
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