Adani Group announced on Tuesday that it plans to invest $100 billion over the next decade to develop renewable energy-powered, AI-ready data centers, aiming to create the world’s largest integrated data center platform and establish India as a major global player in artificial intelligence infrastructure.

Chairman Gautam Adani described the initiative as a cornerstone of India’s participation in what he called “the Intelligence Revolution — more profound than any previous Industrial Revolution.” The company stated that the $100 billion investment would generate a $250 billion AI infrastructure ecosystem in India by 2035, while catalyzing an additional $150 billion in spending across server manufacturing, sovereign cloud platforms, and supporting industries.

The announcement aligns with India’s broader push to become a significant AI hub in the Global South. It coincides with the ongoing AI Impact Summit in New Delhi (February 16–20, 2026), India’s first major international AI conference, featuring global leaders such as OpenAI CEO Sam Altman and Alphabet CEO Sundar Pichai.

Key Elements of the Adani Plan. Adani’s vision builds on AdaniConnex — its joint venture with U.S.-based data center operator EdgeConnex — which currently operates 2 gigawatts (GW) of national data center capacity. The company aims to scale this to 5 GW as part of the broader $100 billion program. All facilities will be powered by renewable energy, leveraging Adani Green Energy’s massive solar and wind portfolio to meet the enormous power demands of AI data centers.

The plan includes large-scale campuses across India, with strategic partnerships already in place. Google (Alphabet) announced in October 2025 a $15 billion investment over five years to build an AI data center hub in southern India, and Adani said it is in talks with other major global players to establish additional facilities. While specific names were not disclosed, the scale suggests potential involvement from hyperscalers seeking low-cost, renewable-powered capacity in Asia.

Market Reaction and Stock Performance

Adani Enterprises, the flagship listed entity of the Adani Group, rose 2.3% on the news, making it one of the top gainers on the benchmark Nifty 50 index. Adani Green Energy shares gained 1.8%. The positive response underlines investor enthusiasm for Adani’s pivot toward high-growth AI infrastructure, which complements its existing strengths in ports, airports, energy, and renewables.

However, Adani stocks remain volatile. Late last month, U.S. Securities and Exchange Commission (SEC) court filings revealed efforts to serve summons on Gautam Adani and nephew Sagar Adani in connection with a November 2024 New York federal indictment alleging bribery and fraud in a massive scheme involving solar energy contracts. India’s Ministry of Law and Justice twice refused to deliver the summons under the Hague Convention in 2025, complicating the case.

India’s Rising AI Role

India’s AI ambitions are accelerating rapidly. The government has set targets to become a global AI powerhouse, with initiatives like the IndiaAI Mission (?10,300 crore allocation) and plans for sovereign cloud infrastructure. But data centers are a critical bottleneck: India’s current capacity is around 1 GW, but demand from hyperscalers, domestic tech firms, and AI startups is expected to grow exponentially as the country aims for 10% of global AI compute share by 2030.

Adani’s $100 billion commitment, if fully realized, would dwarf current capacity and position India as a major alternative to traditional hubs like the U.S., Singapore, and Europe. The renewable energy focus addresses both sustainability concerns and the massive power requirements of AI workloads (a single large data center can consume as much electricity as a small city). The plan also aligns with India’s “Make in India” and “Atmanirbhar Bharat” (self-reliant India) initiatives, aiming to build domestic server manufacturing, cooling systems, and ancillary industries.

The projected $150 billion in ecosystem spending would create thousands of jobs and stimulate manufacturing in semiconductors, power electronics, and data center hardware.

The Challenges Ahead

Building 5 GW of AI-ready, renewable-powered data center capacity requires massive capital, land, power infrastructure, and regulatory approvals. India’s power grid faces constraints, and renewable integration at this scale will demand significant investment in transmission and storage.

Also, the ongoing U.S. SEC case and bribery allegations create reputational risk, even if they remain unresolved. Competition is fierce: global hyperscalers (Google, Microsoft, AWS, Meta) are expanding in India, while domestic players like Reliance Jio and Tata Communications are building large-scale data centers.

In addition, Adani Group’s aggressive expansion across ports, airports, energy, and now AI infrastructure has drawn scrutiny over debt levels and governance. The group’s ability to deliver on the $100 billion pledge while maintaining financial discipline will be closely watched.

However, the announcement reinforces India’s growing role in global AI infrastructure. With the U.S. facing power constraints in traditional data center hubs and Europe grappling with energy costs, India’s low-cost renewable energy, large talent pool, and government support make it an attractive destination.

The AI Impact Summit provides a high-profile platform for Adani to showcase the plan to global leaders. Participation from Altman, Pichai, and other executives underscores India’s rising relevance in the AI ecosystem. For investors, the news strengthens the case for Adani Group stocks as a proxy for India’s infrastructure and AI growth story. Adani Enterprises and Adani Green Energy have been volatile but resilient, reflecting confidence in Gautam Adani’s execution ability despite legal and geopolitical challenges.

Analysts expect India’s positioning as a creator and exporter of intelligence, not just a consumer, to buoy Adani’s $100 billion bet to become one of the defining infrastructure plays of the decade. Success would accelerate India’s AI ambitions, create a massive domestic ecosystem, and challenge established data center hubs worldwide.

India’s second-largest software services exporter, Infosys, said on Tuesday that artificial intelligence services accounted for 5.5% of its revenue in the December quarter, the first time the company has formally disclosed the contribution of its AI business.

The disclosure comes at a sensitive moment for India’s $283 billion IT services industry, which is confronting mounting investor concern that generative AI and autonomous systems could reshape — or erode — its traditional labor-intensive outsourcing model.

Infosys posted third-quarter revenue of 454.79 billion rupees ($5.01 billion), meaning AI-related work is now a measurable and growing revenue stream within the company’s portfolio.

Chief Executive Salil Parekh said the AI segment is “growing at a robust pace,” adding that its offerings include autonomous agents and embedded AI systems designed for physical devices and hardware environments. Parekh has previously stated that Infosys is working on 4,600 AI projects and has developed more than 500 AI agents.

Industry Under Pressure from AI Acceleration

The timing of the revenue breakout is of importance. Indian IT stocks have suffered their worst weekly decline in more than 10 months, amid fears that rapid advances in generative AI, particularly tools from companies such as Anthropic, could compress demand for traditional application maintenance, coding, and back-office services.

The recent sell-off has erased roughly $40 billion from the sector’s market capitalization so far in February, reflecting anxiety that automation could reduce billable headcount — the backbone of India’s outsourcing model for decades.

The core business model of Indian IT majors has historically depended on scale: deploying large pools of engineers to manage enterprise systems, modernize legacy infrastructure, and provide long-term support services. AI-driven automation threatens to alter pricing dynamics by reducing manual effort and accelerating software development cycles.

By quantifying AI revenue, Infosys appears to be signaling that it is not merely exposed to disruption but actively participating in the shift.

Competitive Positioning: Infosys vs. Peers

Infosys’ AI revenue share of 5.5% places it broadly in line with larger rival Tata Consultancy Services, which has said its AI services generate approximately $1.8 billion annually, or around 5.8% of total revenue.

The figures suggest that while AI remains a minority contributor today, it is no longer peripheral. For investors, the key question is not only how fast AI revenue grows, but whether it can offset potential declines in legacy service lines.

Margin dynamics will also be closely watched. AI projects often command higher value-add but can require significant upfront investment in platforms, training, and partnerships.

Infosys on Tuesday also announced a collaboration with Anthropic to establish a dedicated center focused on building and deploying AI agents. The initiative will begin in the telecom sector before expanding into financial services, manufacturing, and software development.

The emphasis on “agents”, AI systems capable of autonomous task execution, reflects a broader industry pivot from chatbot-style interfaces toward workflow automation and decision-support systems embedded within enterprise environments.

By aligning with a frontier AI lab such as Anthropic, Infosys is positioning itself as an integrator of advanced models into enterprise-grade solutions, rather than attempting to build foundational models in-house.

Structural Implications for India’s IT Model

The evolution toward AI-led services raises deeper structural questions for India’s technology sector.

If AI tools significantly reduce coding and maintenance hours, traditional pricing structures based on effort and staffing may face compression. Companies will need to shift toward outcome-based pricing, platform-driven services, and domain-specific AI solutions.

At the same time, India’s large engineering talent pool and long-standing global client relationships could prove advantageous in the AI transition. Rather than displacing Indian IT firms, AI may accelerate their move up the value chain — from labor arbitrage to AI-enabled digital transformation.

Infosys’ announcement comes as India hosts the AI Impact Summit in New Delhi from February 16–20, highlighting the country’s ambition to play a larger role in shaping global AI development and deployment.

The summit underscores a broader narrative: India is not only a consumer of AI technologies but increasingly a deployment hub, systems integrator, and engineering center for global enterprises adopting AI at scale.

For Infosys and its peers, the coming quarters will test whether AI becomes a margin-enhancing growth engine — or a disruptive force that compels painful restructuring. However, the 5.5% figure, modest on the surface, signals that the transition is already underway.

Yandex’s adjusted EBITDA surged 80% in Q4 2025—nearly three times faster than revenue growth—highlighting sharp margin expansion and strengthening operating leverage.

Russia’s largest internet company, Yandex, reported fourth-quarter 2025 revenue of 436 billion roubles ($5.68 billion), marking a 28% year-on-year increase and capping a year of sustained top-line expansion.

More striking than the revenue growth was the surge in profitability. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 80% to 87.8 billion roubles, while adjusted net profit rose 70% to 53.5 billion roubles. The divergence between revenue and earnings growth underscores significant operating leverage, suggesting improved cost discipline, better monetization across platforms, and scaling benefits across core segments.

Margin Expansion and Operating Leverage

The 80% rise in adjusted EBITDA compared with 28% revenue growth points to a substantial expansion in margins during the quarter. This indicates that incremental revenue is translating into disproportionately higher operating income, a hallmark of maturing digital platforms where fixed costs are largely absorbed, and additional revenue carries higher contribution margins.

Such performance suggests improved efficiency across Yandex’s ecosystem, which spans search and advertising, e-commerce, ride-hailing, food delivery, cloud computing, and AI-driven services. Higher monetization rates in advertising technology, stronger performance in e-commerce logistics, and disciplined spending likely contributed to the improvement.

Adjusted net profit growth of 70% further confirms that bottom-line expansion is not solely driven by accounting adjustments but reflects structural profitability gains.

Management recommended a dividend of 110 roubles per share, a move that signals confidence in cash flow generation and balance sheet resilience. Dividend proposals from high-growth technology firms often indicate that management believes earnings are sustainable and that capital expenditure requirements are under control.

The recommendation suggests Yandex is entering a phase where shareholder returns are becoming an increasingly important component of its capital allocation strategy. This can broaden investor appeal, particularly in markets where income-oriented strategies are gaining traction.

2026 Outlook: Solid Growth, Elevated Profit Target

Looking ahead, Yandex expects revenue to grow by around 20% in 2026. While slightly below the Q4 growth pace, the guidance still reflects robust double-digit expansion in a complex macroeconomic environment.

The company forecasts adjusted EBITDA of 350 billion roubles for 2026. If achieved, that would represent a significant annual earnings base and reinforce the trajectory of sustained margin strength. The implied EBITDA margin suggests that profitability improvements are not temporary but structural.

The guidance indicates that Yandex is balancing growth with operational efficiency, focusing on profitable expansion rather than purely aggressive market share capture.

Yandex remains a central player in Russia’s digital infrastructure. Its diversified ecosystem model—integrating search, commerce, fintech services, transportation platforms, and cloud computing—creates cross-platform synergies that enhance user retention and data monetization.

In a domestic market shaped by geopolitical constraints and limited competition from certain foreign technology platforms, Yandex has consolidated its position as a dominant digital services provider. This structural advantage has supported scale benefits and advertising resilience.

At the same time, domestic macroeconomic conditions, currency fluctuations, and regulatory developments remain key risk factors. Revenue growth and earnings expansion will depend on consumer spending patterns, digital advertising budgets, and business investment cycles in 2026.

The Q4 performance highlights three critical themes:

• First, revenue momentum remains solid, reflecting continued demand for digital services.
• Second, profit growth is accelerating faster than sales, indicating stronger cost control and operating leverage.
• Third, the dividend recommendation signals financial confidence and maturing capital management.

With projected 2026 revenue growth of 20% and a targeted EBITDA of 350 billion roubles, Yandex appears positioned to consolidate its profitability gains while maintaining expansion across strategic verticals such as artificial intelligence and cloud services.

The fourth-quarter results therefore, mark not only a strong finish to 2025 but also a transition toward a more earnings-driven growth phase, where operational efficiency and disciplined capital allocation are becoming central pillars of the company’s strategy.