In a powerful statement reflecting the current tech transformation era, NxtGen Infinite Datacenter’s CEO and Founder A.S. Rajgopal has revealed that the company’s AI business is expected to generate more revenue in 2025 alone than its cumulative cloud business revenues over the last 13 years. The Bengaluru-based digital infrastructure and AI solutions provider is witnessing an unprecedented surge in demand, driven by India’s AI adoption boom across enterprises, government, and digital startups.
Key Highlights
- AI revenues in 2025 will surpass 13 years of cloud revenues.
- Major AI adoption in BFSI, healthcare, public sector, and manufacturing.
- NxtGen operates high-density AI-ready data centres across major Indian cities.
- Plans to expand GPU clusters, private AI cloud platforms, and sovereign AI solutions for India.
NxtGen’s AI Journey: CEO’s Strategic Insights
Speaking at a leadership forum in Bengaluru, Rajgopal emphasised:
“We built our company on cloud infrastructure over the last decade, investing heavily in data centre capacity and hybrid solutions. But the AI wave has outpaced all our revenue projections. In just one year, AI revenues are surpassing the entire 13-year cloud journey.”
He attributed this growth to:
- India’s digital public infrastructure (DPI) initiatives demanding sovereign AI platforms.
- Startups and banks adopting AI-based fraud detection, underwriting, and analytics.
- Generative AI projects across pharma research and digital media companies.
AI Versus Cloud: Revenue Comparison
| Segment | Cumulative Revenue (2012-2024) (Rs crore) | Projected FY25 Revenue (Rs crore) | YoY Growth (%) |
|---|---|---|---|
| Cloud & Data Centre | 3,800 | 450 | 15 |
| AI Business | NA | 4,000 | NA |
(Source: Company estimates shared by CEO at Bengaluru leadership forum)
Note: AI revenue will exceed cumulative cloud revenue since inception.
Why Is AI Driving Such Explosive Growth For NxtGen?
- GPU Cloud Adoption:
NxtGen has created India’s largest private GPU cloud ecosystem, catering to demand from LLM model training, computer vision, medical AI, and banking AI workloads. - Regulatory Compliance and Sovereign AI:
Enterprises and government projects prefer data-localised AI models hosted on Indian data centres instead of foreign public cloud platforms for compliance and security. - Scalable Multi-Tenant Architecture:
Their AI infrastructure supports multi-tenant GPU clusters, driving cost efficiency for smaller startups building AI solutions. - Enterprise AI-as-a-Service:
NxtGen’s AIaaS platform enables companies to deploy and train models without building their own hardware stack.
Recent Key AI Projects Of NxtGen
| Sector | Client | Use Case |
|---|---|---|
| Banking | PSU Bank (Name undisclosed) | AI-based risk underwriting and loan analytics |
| Healthcare | Private Hospital Chain | Radiology image analysis AI for faster diagnosis |
| Public Sector | State Government | Smart city surveillance AI analytics |
| Manufacturing | Leading auto OEM | Predictive maintenance and AI defect detection |
| Media & Digital | OTT platform | AI content moderation and recommendation engine |
Strategic Investments In AI Infrastructure
Rajgopal highlighted upcoming initiatives:
- Doubling GPU capacity by Q4 FY26, investing in NVIDIA H100 and future Blackwell series accelerators.
- Launching sovereign AI cloud services to support India’s DPI stack, e-governance AI models, and language LLMs.
- Expansion of Edge AI nodes across Tier-2 cities to enable real-time computer vision and industrial AI use cases.
Company Financial Snapshot
| Particulars | FY23 | FY24 | FY25 Projected |
|---|---|---|---|
| Revenue (Rs crore) | 870 | 1,030 | 4,500 |
| EBITDA Margin (%) | 18.2 | 19.5 | 25.0 |
| Net Profit (Rs crore) | 105 | 122 | 400 |
| Capex Investment (Rs crore) | 280 | 350 | 1,200 |
(Source: Company filings and CEO projections)
Industry Context: AI Infrastructure Boom In India
With AI workloads requiring high-density GPU data centres and local data residency, companies like NxtGen, Yotta, and CtrlS are witnessing record demand. Analysts project:
| Market Segment | 2024 Size (Rs crore) | 2030 Size (Rs crore) | CAGR (%) |
|---|---|---|---|
| AI Infrastructure & Cloud | 5,200 | 47,500 | 44.2 |
| Enterprise AI Software | 9,800 | 86,300 | 44.8 |
| AI Services & Consulting | 4,300 | 28,700 | 36.6 |
(Source: NASSCOM, IDC India AI Outlook)
Competitor Landscape
NxtGen competes with:
- Yotta Data Services: Offering AI cloud on NVIDIA DGX clusters.
- CtrlS Datacenters: Expanding AI data centres in Hyderabad and Mumbai.
- AWS, Azure, Google Cloud: Global hyperscalers with India AI availability zones.
However, NxtGen positions itself as an Indian sovereign AI infrastructure player, compliant with data localisation, and serving sensitive sectors.
Analyst Views
- HDFC Securities: AI revenues will drive 3x overall revenue growth in FY26-FY27, improving operating leverage.
- ICICI Securities: Profitability likely to rise as AI infrastructure yields premium billing rates.
- Motilal Oswal: Rising competition from global hyperscalers remains a risk but demand outpaces supply in India’s AI market.
Future Outlook For NxtGen
- FY26 AI revenue target: Rs 8,000 crore
- Edge AI deployment: Across 50+ cities by FY27
- IPO plans: No immediate IPO, focus on revenue scaling before listing by FY28
CEO’s Closing Note
Rajgopal concluded:
“We believe AI will be the defining technology of the decade, with more transformative impact than the cloud. NxtGen is committed to enabling India’s sovereign AI goals and making advanced compute accessible to every enterprise, startup, and government department.”
Disclaimer:
This article is for informational purposes only, summarising company statements and market data. It does not constitute investment advice. Readers are advised to consult professional financial advisors before making investment decisions.
