India aims to be a data center hub, leveraging its data generation and market. However, its global capacity share is modest, as investors prioritize regulatory certainty over just data availability. The country faces fragmented regulations and complex data governance. While recent tax carve-outs are positive, their success hinges on clear implementation and avoiding prescriptive business model conditions. Global capital is highly mobile; India must provide transparent, consistent, and predictable regulatory and tax environments to genuinely attract long-term digital infrastructure investments, dispelling the notion that investors are automatically flocking to its shores.