US Tech Giants Pause India Data Center Deals Amid Trade Uncertainty

India's booming data center market is facing a temporary slowdown as major international players reassess their investment plans. U.S. technology companies are delaying their decisions to lease large data centers in India, with new deals having been on hold for over two months October 2, 2025: Day 2 coverage of the government shutdown | CNN Politics, according to industry sources. The pause comes amid broader trade uncertainty affecting technology sector investments. Hyperscalers may revisit their plans within the next three to six months October 2, 2025: Day 2 coverage of the government shutdown | CNN Politics, suggesting this is a temporary reassessment rather than a permanent shift in strategy. India has emerged as a critical market for cloud computing and data storage infrastructure, driven by the country's rapid digital transformation and growing tech ecosystem. The temporary hold on new deals reflects the cautious approach companies are taking amid evolving global trade dynamics. Despite the current pause, India remains an attractive destination for data center investments due to its large population, growing digital economy, and government initiatives supporting digital infrastructure development. Industry experts expect activity to resume once trade conditions stabilize.