Macron and Modi court tech CEOs in a race for AI data center investment

A diplomatic push by French President Emmanuel Macron and Indian Prime Minister Narendra Modi is reshaping how countries attract AI infrastructure. Instead of relying on broad policy pitches alone, both leaders are using direct CEO-level engagement to secure large-scale data-center investments from companies like SoftBank and Amazon. For AI builders, this signals where future capacity will land and what incentives might shape their infrastructure choices.

What happened

Macron and Modi have led personal charm offensives to court tech CEOs for AI data-center investment. Macron hosted AI executives at the G7 summit in June, where he personally convinced SoftBank's Masayoshi Son to expand France's AI data-center plans. SoftBank later announced it would build 3.1 GW of AI data centers in France by 2031, as part of a 75-billion-euro program to roll out 5 GW of total AI data-center capacity in the country. Macron committed to securing 3 GW of power from France's nuclear-heavy grid for the SoftBank projects, up from an initial 2 GW proposal.

Modi met Amazon CEO Andy Jassy and welcomed a record $48 billion investment in India, of which $21 billion will go toward AI and cloud infrastructure. Modi also secured commitments from Microsoft, Google, and Intel last year to help develop India's AI ecosystem. In a separate move during Modi's visit to the Netherlands, ASML agreed to supply advanced lithography tools for a 300mm semiconductor fab being built by Tata Electronics in India, while Intel's Lip-Bu Tan signed up as a prospective chip buyer from that facility.

Both leaders also launched the Bharat Innovates 2026 initiative in Nice, France, to showcase Indian deep-tech startups to global investors. These coordinated diplomatic efforts represent a structured approach to locking in AI infrastructure commitments through top-level executive relationships.

Why AI builders should care

The location and pricing of AI data-center capacity directly affect where you can train models, host inference workloads, and deploy latency-sensitive applications. Governments that offer stable power, tax incentives, and direct CEO engagement are becoming preferred destinations for hyperscalers, which influences the supply of GPU clusters and cloud regions available to developers.

India's heavy reliance on foreign AI models and computing hardware also creates a risk. The country does not yet produce cutting-edge chips domestically, which makes its AI ambitions vulnerable to export-control directives from other countries. For builders planning long-term deployments, this means India-based infrastructure may face upstream supply constraints that independent developers should monitor.

Practical implications

For teams evaluating where to deploy training or inference pipelines, the emerging France-India axis offers two very different profiles. France is leaning into its nuclear power capacity and a central European location. India is offering long-term tax breaks to hyperscalers and pushing for domestic chip production.

SoftBank's 3.1 GW commitment in France and Amazon's $21 billion earmark for Indian AI and cloud infrastructure are concrete signals that capacity will scale in both markets. The ASML-Tata semiconductor deal further suggests India is positioning for long-term hardware independence, though that fab will take years to reach volume production.

The diplomatic efforts also include a Franco-Indian center for AI in healthcare in New Delhi, indicating that vertical AI applications may get preferential regulatory treatment in these countries.

Caveats

Investment figures and capacity targets are subject to change and depend on ongoing negotiations. The $48 billion and 5 GW figures are initial commitments that may shift with market conditions or regulatory changes. India's semiconductor fab timeline and actual chip output are not yet specified. Export-control risks remain a structural concern for India's ecosystem, and no policy guarantees have been made to insulate it. The long-term tax incentives offered to hyperscalers in India have not been detailed in amount or duration.