BharathCloud Bets $100M on Sovereign AI Cloud to Power India's Future

HYDERABAD, India – January 16, 2026 – In a significant move to bolster India's digital infrastructure, Hyderabad-based BharathCloud has announced a strategic partnership with global real estate firm JLL, earmarking an investment of up to USD 100 million over the next five years. The initiative aims to build a network of AI-ready sovereign cloud data centers across the country, directly addressing the nation's growing demand for data localization and secure, high-performance computing.

This investment arrives at a pivotal moment for India, which is rapidly cementing its position as a global technology hub. The partnership will see JLL act as the exclusive advisory partner, leveraging its expertise in real estate to identify and develop sites for these advanced cloud centers. The plan includes establishing a presence in major metros like Mumbai, Hyderabad, Bengaluru, Chennai, Delhi NCR, Kolkata, and Pune, with a crucial focus on extending this digital backbone into emerging Tier-II and Tier-III cities.

Powering India's Digital Sovereignty

The core of BharathCloud's strategy is the concept of a 'sovereign cloud'—an infrastructure that ensures data is stored and processed within India's borders, subject to its laws and governance. This aligns directly with the Indian government's 'Digital India' initiative and addresses stringent data localization policies mandated by regulators for sensitive sectors such as finance, healthcare, and public services.

Padma Reddy Sama, Co-Founder of BharathCloud, emphasized the strategic importance of this direction. "This strategic partnership with JLL is a key milestone in advancing India-first, enterprise-grade AI cloud infrastructure," Sama stated in the announcement. He detailed a vision to "roll out sovereign, AI-powered cloud centres starting with at least two in every metro and expanding into Tier-II and Tier-III cities while ensuring top-tier security, scalability, operational efficiency, and compliance with India's data sovereignty requirements."

For many Indian enterprises and government bodies, the reliance on global cloud providers has often created compliance and data governance challenges. By offering a homegrown alternative optimized for artificial intelligence and machine learning workloads, BharathCloud aims to provide a secure and compliant foundation for innovation, particularly for organizations handling sensitive citizen data or proprietary intellectual property.

Riding the Data Center Wave

The planned USD 100 million investment, though substantial, is a calculated entry into one of the world's fastest-growing data center markets. The press release notes that the investment is subject to board approvals and financing arrangements, indicating a phased and strategic rollout. JLL's role will be critical in navigating the complex real estate landscape to secure optimal locations for these high-tech facilities.

Rachit Mohan, APAC Lead for Data Centre Colocation Leasing at JLL, contextualized the immense opportunity. "The cloud centre market is experiencing a boost as India's data centre landscape, with capacity set to surge from 1.25 GW in 2025 to an impressive 10.5 GW by 2035—an eightfold increase in just one decade," Mohan said. He described a "perfect storm of opportunity" created by the convergence of AI infrastructure buildouts, cloud market expansion, 5G deployment, and government-led digital initiatives.

This explosive growth, which analysts estimate could require up to USD 50 billion in new investment over the next decade, positions India as a critical hub in the global digital economy. The partnership between a cloud specialist and a real estate giant is designed to efficiently deploy capital and expertise to capture a share of this burgeoning market.

Forging a 'Digital Triangle'

This new alliance with JLL is not an isolated move but the latest piece in a larger strategic puzzle. BharathCloud previously established a partnership with DE-CIX India, a leading global interconnection platform. This collaboration enhanced its network fabric, providing low-latency, high-speed connectivity crucial for real-time applications and AI model training.

By adding JLL's real estate and infrastructure development capabilities to its existing interconnection strength with DE-CIX, BharathCloud is effectively creating what it calls a "fully functional Digital Triangle in India." This three-pronged strategy integrates secure cloud services, a robust interconnection ecosystem, and strategically located physical infrastructure. The synergy is intended to provide businesses with a seamless, end-to-end solution that empowers them to scale efficiently while meeting strict data residency and performance requirements.

Competing in a Crowded Sky

BharathCloud, founded in 2021, enters a highly competitive arena. The Indian cloud market is currently dominated by global hyperscalers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which have invested billions in their Indian data center regions. Alongside them are established domestic players such as Tata Communications, HCLTech, and CtrlS Datacenters.

However, BharathCloud is carving out a niche by focusing intently on the sovereign and AI-ready aspects of its offering. While global giants provide a vast menu of services, their global nature can be a hurdle for clients with strict data sovereignty mandates. BharathCloud's differentiation lies in its promise of an 'India-first' approach, tailored compliance, and dedicated infrastructure for the next generation of AI applications.

With a reported client base of over 1,500 across more than 20 industries, the company has already demonstrated an ability to attract small and medium-sized enterprises (SMEs) and other organizations seeking localized cloud solutions. The expansion into Tier-II and Tier-III cities further distinguishes its strategy, aiming to democratize access to high-end computing power and foster innovation beyond the traditional tech corridors, potentially unlocking new economic growth across the nation.