Google and Microsoft are deploying multi-billion dollar incremental capital into AI data centers across multiple India hubs to accelerate sovereign AI infrastructure scale-up and enable domestic model training close to primary demand markets. The strategy shift prioritises compute location adjacency, compliance-grade data residency and workload security optimisation for Indian enterprise environments rather than relying on foreign region inference. For infra allocators this potentially unlocks second-order hyperscaler compute monetisation cycles across interconnect fabric, HPC networking, GPU cluster backbone expansion and liquid cooling parallel build patterns across 2026 horizon.