Gartner: AI Reshaping Data Centers, Cloud Spending and IT Operations in India

At the Gartner IT Infrastructure, Operations & Cloud Strategies Conference 2026 in Mumbai, Gartner analysts outlined how artificial intelligence is transforming data centers, infrastructure operations, and platform engineering strategies across enterprises.

Ajeeta Malhotra

A major announcement at the conference revealed that end-user public cloud spending in India is forecast to exceed $17 billion in 2026, underscoring the growing adoption of cloud technologies and AI-driven digital transformation initiatives.

AI Driving the Future of Data Centers

During a session on the future of data centers, Ashish Banerjee, Senior Principal Analyst at Gartner, highlighted how AI is fundamentally changing data center site selection, infrastructure design, and operational strategies.

According to Gartner, organizations planning new data centers or evaluating colocation facilities should focus on four key site-selection criteria:

Power availability and interconnect, including verified utility capacity, power purchase agreements (PPAs), and reliable grid connectivity.

Market location, with Tier 2 and Tier 3 markets often offering improved availability and lower operating costs.

Energy strategy, including on-site generation and alternative energy options.

Community and regulatory engagement to address environmental, social, and regulatory requirements early in the planning process.

Gartner emphasized that AI-ready facilities supporting high-density workloads should be designed for liquid cooling technologies. The firm noted that rising AI computing requirements are pushing rack power densities to levels that make liquid cooling essential for efficient and scalable growth.

Banerjee also advised organizations to evaluate self-contained modular infrastructure solutions that provide customizable power densities and flexible cooling configurations. Water consumption is emerging as another critical planning factor, prompting organizations to adopt closed-loop cooling systems and water reuse strategies wherever possible.

In addition, Gartner warned I&O leaders to prepare for energy resilience challenges, including load-shedding requirements, AI-driven power fluctuations, and the growing need for real-time visibility into energy usage.

Preparing for the Agent-Native Future

Alessandro Galimberti, Vice President Analyst at Gartner, described AI agents as the most significant disruption to infrastructure and operations since the emergence of cloud computing two decades ago.

Gartner introduced the concept of “agent-centric I&O,” where AI agents and human expertise work together to deliver digital infrastructure and operations services. The company stressed that agent-centric operations do not eliminate the need for people. Instead, human expertise remains essential for defining objectives, assessing outcomes, and guiding AI decision-making.

Gartner advised organizations that they cannot move directly to agent-centric operations. Enterprises must first establish strong capabilities in managing technology assets, projects, business processes, external services, and infrastructure platforms.

The analyst firm further stated that excellence in infrastructure platform engineering will be a mandatory requirement for organizations seeking to successfully adopt agent-centric I&O models.

Infrastructure Platform Engineering Becomes Strategic Priority

Ajeeta Malhotra, Senior Principal Analyst at Gartner, highlighted infrastructure platform engineering (IPE) as a foundational element of future I&O organizations.

Gartner defines IPE as the practice of building and operating shared infrastructure services as internal products that provide development teams with self-service and API-driven access to infrastructure and application resources.

According to Gartner, successful IPE programs depend on three critical pillars:

Defining the right organizational roles.

Hiring employees with the appropriate skills.

Investing continuously in training and capability development.

Malhotra emphasized that continuous learning is essential because technology and user requirements continue to evolve rapidly. Gartner recommends prioritizing hands-on practical training, adopting agile learning approaches, treating training as a core work activity, and formalizing mentorship programs to accelerate knowledge transfer across teams.

The conference discussions collectively highlighted how AI, cloud computing, energy management, and platform engineering are becoming increasingly interconnected, reshaping enterprise infrastructure strategies across India and globally.

RAJANI BABURAJAN

Baburajan Kizhakedath
Baburajan Kizhakedath
Baburajan Kizhakedath is the editor of InfotechLead.com. He has three decades of experience in tech media.

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