Blackstone is backing Indian artificial intelligence infrastructure firm Neysa in a financing package of up to $1.2 billion, sources said, marking one of the largest private capital commitments to India’s fast-emerging AI and data-centre ecosystem.
The financing, expected to be deployed in tranches, will fund the development of large-scale AI-focused data centres and high-performance computing infrastructure as demand for domestic compute capacity accelerates nationwide. The final structure of the deal, which may include a mix of equity, debt, and structured financing, has yet to be finalised.
The investment highlights growing global investor confidence in India’s push to establish itself as a serious player in AI infrastructure, reducing reliance on overseas cloud providers while supporting the rapid adoption of generative AI across both public and private sectors.
Neysa, which positions itself as a homegrown AI infrastructure platform, focuses on building GPU-dense data centres to support compute-intensive workloads, including large language models, enterprise AI applications, and advanced analytics. It aims to serve enterprises, startups, and government agencies that require scalable, locally hosted AI compute.
The proposed financing comes amid a global surge in demand for AI computing power driven by the rapid growth of generative AI tools. That demand has strained existing infrastructure, with shortages of advanced chips, rising power costs, and long lead times for new data centre capacity becoming key constraints.
In India, these pressures intersect with policy priorities. The government has signalled its intention to strengthen domestic AI capabilities, citing data sovereignty, regulatory oversight and strategic autonomy in critical digital infrastructure, while warning against over-reliance on foreign hyperscalers.
“AI adoption is moving much faster than infrastructure build-out,” said a senior industry executive familiar with the sector. “India has the talent and demand, but scaling AI locally requires massive, patient capital and long-term planning.”
Blackstone’s backing places it among a growing pool of global investors targeting India’s digital infrastructure sector, where data consumption, cloud adoption and enterprise digitisation continue to rise. The firm has expanded its exposure to data centres, telecom towers and energy assets globally, viewing them as long-duration investments tied to structural technology trends.
People familiar with the transaction said the investment aligns with Blackstone’s strategy of backing platforms at the intersection of technology, infrastructure, and energy, as AI workloads demand increasing power, cooling, and specialised hardware.
For Neysa, access to large-scale funding is critical in a capital-intensive sector where speed to market is a competitive advantage. Analysts say the deal also reflects intensifying competition among infrastructure providers racing to meet demand from banks, telecoms firms, manufacturers and software companies integrating AI into operations.
“Whoever controls compute controls a large part of the AI value chain,” said an analyst at a Mumbai-based advisory firm, adding that the investment signals global capital views India as a long-term AI infrastructure market, not merely an applications hub.
While India’s data centre capacity has expanded rapidly with federal and state policy support, AI-specific infrastructure, particularly high-density GPU facilities, remains limited relative to projected demand. Industry estimates suggest billions of dollars in additional investment will be required over the next decade.
Sources cautioned that while the headline figure could reach $1.2 billion, the pace of capital deployment will depend on project milestones, market conditions and regulatory approvals. Discussions are ongoing, and terms may change.
Neither Blackstone nor Neysa responded immediately to requests for comment.
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