Bharat Forge’s subsidiary, Kalyani Powertrain, has announced a strategic collaboration with Advanced Micro Devices (AMD) to manufacture Made in India servers. This partnership marks a significant milestone in India’s server infrastructure and aims to integrate AMD’s cutting-edge technology with domestically manufactured solutions. The announcement was made on February 24, highlighting Bharat Forge’s foray into the high-potential Indian server market.
Kalyani Group Chairman Baba Kalyani and Vice Chairman & JMD Amit Kalyani emphasized the importance of this collaboration, stating, “This collaboration with AMD is a significant step, and I am confident that we are moving in the right direction.” The alliance is expected to strengthen Bharat Forge’s technological capabilities while supporting the ‘Make in India’ initiative.
Unveiling the First AMD EPYC-Based Server
At a recent event in Pune, Maharashtra, leaders from Kalyani Powertrain and AMD unveiled the first EPYC CPU-based server, officially launching the strategic alliance. This partnership is set to cater to India’s growing demand for high-performance computing across industries such as automotive, telecom, cloud computing, and AI.
AMD Corporate Vice President, Vinay Sinha, highlighted the importance of the technology, stating, “The integration of AMD EPYC processors today and AMD Instinct accelerators planned in the future will enable scalable, energy-efficient infrastructure for AI, cloud computing, and data centers.” The servers will be powered by AMD EPYC processors, which offer leading performance in energy efficiency and security. This, in turn, will help reduce the Total Cost of Ownership (TCO) for data centers, making them more sustainable and cost-effective.
India’s Vision to Become a Global Data Centre Hub
India is positioning itself as a global data centre hub, with its market expected to grow from $4.5 billion in 2023 to $11.6 billion by 2032, at a CAGR of 10.98%. According to the Economic Survey 2025, tabled in Parliament, the rapid expansion of data centres is driven by low construction costs, government initiatives like MeghRaj, and major infrastructure investments.
Growth in Data Centre Capacity
India’s colocation data centre capacity reached 977 MW in 2023, with 258 MW added that year, reflecting a 105% year-on-year growth. From 2024 to 2028, the total data centre capacity under construction is projected to reach 1.03 GW, with an additional 1.29 GW planned. This expansion is fueled by rising demand for cloud computing and digital services, further supported by initiatives such as the GI Cloud initiative (MeghRaj).
Government Initiatives Driving Expansion
The MeghRaj initiative plays a crucial role in India’s IT strategy, ensuring the efficient delivery of Information and Communication Technology (ICT) services through cloud computing. As of November 30, 2024, the National Informatics Centre supports 1,917 applications on its cloud platform, with 23 public and private cloud service providers empanelled to meet the growing demand for cloud services.
Cost Advantages Over Global Competitors
One of the key reasons for India’s emergence as a global data centre hub is its relatively low construction costs. In 2023, the median cost of constructing data centres in India was $6.8 million per MW, significantly lower than Australia ($9.17 million), Japan ($12.73 million), and Singapore ($11.23 million). This cost advantage, combined with India’s well-established IT ecosystem, makes it an attractive destination for global investors looking to establish data centres.
Future of the AMD-Bharat Forge Partnership
The collaboration between Bharat Forge and AMD could be a game-changer in India’s data infrastructure, helping the nation accelerate its AI and cloud computing capabilities. AMD has also been exploring the sale of its data centre manufacturing plants to Asian companies as it seeks to compete with Nvidia in AI revenue generation.
With India’s digital transformation in full swing, this alliance has the potential to reshape the country’s server market, strengthening its technological self-reliance and paving the way for an AI-driven future.
