Union Bank of India: AI financing demand to shift to data centres

A Union Bank of India report expects AI financing demand in India to shift over the next 3–5 years toward debt funding for data centres and computing infrastructure. Key risks include rapid GPU obsolescence on 18–24 month cycles, uncertain revenue models and evolving AI governance rules.

• India has 880–900 million internet users, targeting 1.2 billion by 2030
• Generative AI features in over 60% of large IT deals
• GPUs become obsolete in 18–24 months, posing financial risk
• Bank recommends structured and equipment financing for GPU clusters