artificial intelligence, enterprise technology, hyperscale, IBX
Article (~800 words):
Global digital infrastructure company Equinix has announced the launch of its first AI-ready data centre in Chennai, backed by a $69 million investment. The facility, named CH1 International Business Exchange (IBX), is designed to meet the rising demand for artificial intelligence workloads and high-performance digital infrastructure across India’s rapidly expanding enterprise and technology sectors.
The launch marks Equinix’s third IBX facility in India, with two existing centres in Mumbai. The company’s expansion into Chennai underscores the growing strategic importance of the southern region, which has become a hub for hyperscale cloud providers, fintech players, and IT service firms. Chennai’s proximity to subsea cable landing stations also enhances its position as a critical gateway for global internet traffic and data connectivity.
According to Equinix, the new AI-ready data centre will provide enterprises, cloud service providers, and digital-first businesses with the infrastructure required to deploy and scale artificial intelligence applications. The facility includes advanced cooling technologies, high-density power configurations, and interconnection services tailored to support AI workloads such as large language models, machine learning pipelines, and generative AI deployments.
The company highlighted that this investment aligns with India’s growing appetite for AI adoption. As organizations in sectors such as banking, e-commerce, telecommunications, and healthcare accelerate their use of AI, demand for low-latency and high-capacity digital infrastructure has surged. Data centres capable of handling these computationally intensive tasks are becoming vital for businesses to innovate and remain competitive.
Equinix has positioned CH1 as part of its broader strategy to enable enterprises to seamlessly connect with digital ecosystems. The facility will provide direct access to major cloud platforms, network carriers, and enterprise partners. This integration is expected to accelerate hybrid multi-cloud adoption, enabling businesses to scale AI-driven services more efficiently.
Manoj Paul, Managing Director, Equinix India, emphasized that the Chennai facility reflects the company’s commitment to supporting India’s digital growth trajectory. He stated that AI is set to become a defining factor in the way enterprises operate, and infrastructure readiness will play a decisive role in enabling organizations to leverage these capabilities at scale.
Industry analysts point out that India is at a critical inflection point in its data economy. With the country projected to generate over 200 zettabytes of data annually by 2026, the need for advanced data centres that can support AI-driven innovation is growing exponentially. Chennai, in particular, is emerging as a focal point for digital infrastructure, with several global and domestic players investing heavily in capacity expansion.
Equinix has already announced long-term investment plans worth over $250 million for India, underlining its commitment to building robust infrastructure to meet future demands. The CH1 facility represents not only a milestone in the company’s expansion but also a broader signal of how India is preparing to host next-generation technologies that rely on high-performance computing and seamless global interconnection.
The new data centre is also designed with sustainability in mind. Equinix has committed to achieving 100 percent renewable energy usage across its global operations, and the Chennai facility will incorporate green energy sourcing and energy-efficient cooling technologies. This aligns with the growing emphasis among Indian enterprises on building sustainable digital infrastructure to meet environmental and regulatory goals.
Enterprises adopting AI across customer experience, financial services, logistics, and retail are expected to benefit from the CH1 facility’s ability to process vast amounts of data with low latency. This capability is particularly critical for real-time AI applications such as fraud detection, recommendation engines, and predictive analytics.
Market experts suggest that the timing of this launch is significant. With India’s AI adoption accelerating and government initiatives like the Digital India program creating momentum, the availability of world-class infrastructure will be a key enabler for enterprises. Equinix’s facility also supports India’s positioning as a global AI hub, attracting investment from international companies looking to deploy AI-driven solutions in one of the world’s largest digital markets.
The Chennai launch also strengthens Equinix’s competitive positioning in India’s growing data centre industry, which is forecast to reach $10 billion by 2027. Rivals including NTT, AdaniConneX, and Yotta are also expanding capacity across the country, with AI-readiness emerging as a major differentiator in new investments.
By providing a platform for interconnection and AI-optimized infrastructure, Equinix aims to facilitate greater collaboration between enterprises, cloud providers, and AI startups. This collaborative ecosystem could accelerate innovation in areas such as generative AI, supply chain automation, and personalized digital experiences.
Looking ahead, Equinix has indicated that it will continue expanding its India footprint to keep pace with surging demand for digital infrastructure. The CH1 facility, with its focus on AI readiness, signals the company’s strategy to not only provide storage and connectivity but also serve as a backbone for India’s AI-driven future.
As AI adoption deepens across industries, investments like these highlight the foundational role of infrastructure in enabling the digital economy. The Chennai launch underscores India’s emergence as both a growth market and an innovation hub for AI-powered business transformation.