Investment Brief · Compute Manufacturing · 2026

The $444B server boom has one wide-open pocket.

Servers are a $444B market growing 80% a year (IDC, 2025). The fastest-opening, least-localized share of that demand is India. This is the case for taking it from Hyderabad.

$20B
approved semiconductor projects
$36.6B
data center market by 2035
700K
GPUs deployed within 5 years
01 · Why India, why now

20% of the data, 3% of the capacity

India generates a fifth of the world's data but hosts a sliver of its data centers. Every megawatt of the buildout needs servers, switches, and accelerators, and nearly all of them are imported today. That is your addressable market, served from outside the country.

20%
of the world's data is generated in India (Economic Survey 2025-26)
3%
of global capacity hosted here; closing the gap means ~8 GW by 2030

Microsoft

$17.5B

Committed to India cloud and AI infrastructure buildout.

Google

$15B

Data centers and AI capacity, anchored by a gigawatt-scale Visakhapatnam hub.

AWS

$40B+

Region expansion nationwide, including $7B+ in Hyderabad alone.

Reliance & Adani

$210B

Domestic giants building gigawatt-scale AI campuses.

02
02 · The demand curve

AI is rewriting India's infrastructure map

Compute demand is compounding faster than capacity can be built, and nearly everything filling these halls is imported: duty, long lead times, and a growing build-local preference working against imports.

$23B GPU infrastructure opportunity
650–700K GPUs forecast for India's data centers over the next 5 years.
100K GPUs targeted by the IndiaAI Mission
By end-2026 under the $1.25B program; 38K+ GPUs already deployed.
$39.5B committed by hyperscalers
Localizing protects margin, cuts lead time, and qualifies for buy-local procurement.
Data center capacity (GW)
1.15
2.0
4.5
9.0
20242027E2030E2030 AI
03
03 · The location

Hyderabad is the center of gravity

AWS
$7B

Hyperscale expansion across Telangana over 14 years.

Microsoft
150 MW

Hyderabad cloud region expanded with new GPU clusters.

NTT + Neysa
$1.18B

AI-first cluster built for 25,000 GPUs across 400 MW.

UPC Volt
$600M

100 MW AI-ready campus rising in Bharat Future City.

i.

Deep silicon talent

Qualcomm, NVIDIA, AMD, Micron, Microchip & NXP already operate here.

ii.

Ready industrial land

900+ acres of ESDM clusters minutes from the international airport.

iii.

Stacked state incentives

20–25% capital subsidy, up to 50% land discount, stamp duty reimbursed.

iv.

Power that holds

100% electricity duty exemption for 5 years; reliable grid plus renewables.

04
04 · The momentum

The OEM playbook has already started

Supermicro

Evaluating local AI-server manufacturing, in-house or via partners, while staffing up in India.

EVALUATING · FEB 2026

Dell

Sriperumbudur facility already builds servers, desktops, and notebooks in-country.

~85% OF INDIA DEMAND

HP

Manufactures its device portfolio with Flex near Chennai and is expanding local sourcing.

SINCE 2021
THE WINDOW

No global OEM yet builds AI servers at scale in India. DPDP data-localization phases in through 2027, PLI 2.0 and ECMS incentives are live, and the import-fed chassis market compounds 28–32% a year to $1.1–1.5B by 2035. The first to localize sets the cost base; the second competes on someone else's terms.

05
05 · The partner

Built by people who already build for the best

Resolute is a 28-year EMS group in Hyderabad. A phased ramp: starting with what ships today, scaling to full AI-rack integration.

Track record
28 yrs

of EMS manufacturing behind the line.

Capacity
9 + 9

SMT and FATP lines running today.

Environment
Class 10K

clean room for sensitive assembly.

Certified
ISO ×3

9001, 14001, and 45001.

i.

Proven at global volume

Data-center switches and high-volume electronics for Samsung and Xiaomi.

ii.

In the right city

NTT and Neysa's 400 MW GPU cluster and Microsoft's Azure region next door.

iii.

Your IP protected

NDAs, secured lines, full MES traceability under your quality controls.

iv.

An honest ramp

Phased scale-up to full AI-rack integration, with clear gates at every step.

06
06 · The economics

Where a dollar of capex works hardest

India
Skilled assembly labor
~$4.50 per hour
Capex support
Up to 50% central + 20–25% state
Payback period
5–6 years
Exposure
Policy tailwinds; localizing removes tariff risk
China
Skilled assembly labor
~$5.20 per hour
Capex support
20–30% lower setup, fading subsidies
Payback period
Compressed by overexposure
Exposure
Tariffs, export controls, geopolitics
USA
Skilled assembly labor
Highest-cost tier
Capex support
Setup runs 2–3× higher overall
Payback period
8–10 years
Exposure
Stable, but heavy on labor and compliance

Straight talk: India assembly carries a modest premium versus established hubs today. PLI 2.0, ECMS incentives, and recent duty cuts close the gap, and localization removes tariff and logistics exposure on the imports it replaces.

07
07 · The entry model

Phase 1: a de-risked $10.2M beachhead

Phase 1 outlay

$10.2M

Balanced between buildout and first-year operations.

CAPEX

$6.6M

SKD line, equipment, facility, licensing.

OPEX

$3.6M

Year-1 manpower, training, utilities, materials.

Partner equity from

$1.5M

Enters only after a joint NPI pilot proves cost and timeline targets.

i.

Your IP stays yours

You keep design, silicon, and IP. Assembly and test run to your spec, under your controls.

ii.

Zero capex liability

All capital and operating expenditure carried locally; phased bank-backed disbursement.

iii.

Governance seat

Oversight of operations, suppliers, and certifications, with full MES traceability.

iv.

Pilot before scale

A joint NPI pilot on one product line with clear gates; 12-month path to go-live.

08
08 · The roadmap

From decision to exports in 24 months

MONTHS 0–6
Build

Facility buildout, cleanroom & ESD infrastructure, workforce hiring and training.

MONTHS 6–12
Pilot

SKD trial runs, parametric testing, ISO and BIS audit track, supplier qualification.

MONTH 12
Go-live

Commercial production begins; incentive disbursement filed under the mission.

MONTHS 13–24
Scale

Vertical integration, R&D lab, exports to emerging markets under co-branding.

India's compute buildout is happening. The first movers set the terms.
Let's build in Hyderabad.
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