Dell expands India manufacturing as AI demand boosts local server production

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Dell strengthens India manufacturing with majority of servers now built locally
Dell strengthens India manufacturing with majority of servers now built locally

India’s growing focus on data sovereignty and the rising adoption of artificial intelligence are encouraging global technology companies to strengthen local manufacturing. Dell Technologies has now expanded its production in the country, with the majority of its servers being manufactured in India.

Speaking to a news agency, Venkat Sitaram, Senior Director and Country Head, Infrastructure Solutions Group, India, Dell Technologies, said most of the company’s locally manufactured products are currently meant for the Indian market. However, the company is also open to exports if the need arises. He added, “A large part of our portfolio, spanning across the client solutions group and infrastructure solutions group … a majority of those servers are made in India. Locally, we participated in PLI 1.0; now in 2.0, we are a major player. We have that roadmap for continuing to serve our customers here with Make in India requirements.”

Sitaram said Indian businesses are increasingly changing their cloud strategies by adopting hybrid infrastructure models. Companies are choosing to keep sensitive and business-critical workloads on-premises instead of depending entirely on public cloud platforms.

The growing use of AI across industries is also driving demand for local infrastructure. Sectors such as banking, financial services and insurance (BFSI), telecommunications, healthcare and government are leading this shift.

Responding to concerns that advanced AI could replace traditional IT and back-office jobs, Sitaram expressed confidence about future employment opportunities. He said, “It’s not replacing; it’s in fact creating more and more… It’s having a multiplier effect”, highlighting the rise of specialised technology roles and increasing investments in skill development by educational institutions and businesses.

Dell also announced the India launch of PowerStore Elite, a next-generation on-premises data platform built to support advanced AI workloads while keeping enterprise data secure within India’s borders. Sitaram described it as a “single point solution” that can manage both legacy and modern AI applications.

Alongside PowerStore Elite, Dell introduced its latest AI infrastructure portfolio, including Dell Cyber Detect for AI-powered ransomware detection at the storage layer and Dell PowerRack, an integrated rack-scale AI system.

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