Even as global technology giants continue to pour billions of dollars into India's artificial intelligence (AI), cloud computing and digital infrastructure ambitions, HSBC Private Bank's latest investment roadmap suggests investors seeking to capitalise on Asia's AI boom may find stronger opportunities elsewhere.

In its Top Trends and High Conviction Themes: Mid-Year 2026 report, HSBC identifies Asia as one of the biggest beneficiaries of the next wave of AI-led investment. But while India has emerged as a magnet for foreign capital, the bank's highest-conviction investment themes are concentrated in China, Japan, South Korea and Singapore. India receives only limited references in broader discussions on energy demand and sustainability, with no dedicated country investment theme.

Global companies are betting big on India

India's appeal to multinational companies has only strengthened in recent months despite geopolitical uncertainty, trade tensions and concerns over slowing global growth.

In February, Google announced a $15 billion five-year investment plan to expand AI infrastructure in India, covering subsea connectivity, cloud capacity, data centres and AI skilling initiatives.

Australia's AirTrunk followed with plans to invest $30 billion to build 5 GW of data centre capacity in India by 2030. Canada Pension Plan Investment Board also committed up to ₹7,000 crore alongside CtrlS Datacenters to expand hyperscale digital infrastructure.

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The momentum continued in June, when Amazon CEO Andy Jassy announced plans to raise the company's India investment commitment to $48 billion by 2030, with a significant focus on AI and cloud infrastructure. Industrial companies have also joined the investment cycle, with ABB announcing a $75 million expansion of its manufacturing and research facilities, while Saint-Gobain committed another €1 billion over the next five years.

Taken together, these announcements underscore growing confidence in India's long-term digital economy and manufacturing ecosystem.

Where HSBC sees the biggest opportunities

HSBC's investment strategy, however, focuses on listed-market opportunities rather than destinations attracting foreign direct investment.

The bank considers China its strongest AI and advanced manufacturing play, highlighting opportunities across semiconductors, AI models, robotics, electric vehicles, batteries and biotechnology. It expects AI adoption in China to accelerate further, supported by government policies and heavy capital expenditure from domestic technology companies.

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Japan features prominently because of corporate governance reforms, rising dividends and record share buybacks that HSBC believes will improve shareholder returns. South Korea is favoured for governance reforms and leadership in AI-related technology and semiconductor industries, while Singapore benefits from shareholder-friendly initiatives and capital market reforms designed to unlock value.

India missing from key AI themes

One of HSBC's highest-conviction themes is Asia's Data Centre Boom, with the bank forecasting Asia-Pacific data centre capacity will more than double by 2030 and account for around 40% of global capacity. The beneficiaries, according to HSBC, include semiconductor manufacturers, server makers, cooling-system suppliers, power infrastructure companies and industrial metals such as copper and aluminium.

However, when discussing regional winners, HSBC highlights Australia, Japan and Southeast Asia, while noting that China's market will largely be driven by domestic demand. India is not identified as one of the preferred markets within the theme.

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Two different investment stories

The divergence reflects two different ways of viewing Asia's AI opportunity.

Global corporations are investing in India to build the infrastructure that will support future AI adoption—from data centres and cloud computing to manufacturing and research. HSBC, meanwhile, is identifying where investors are likely to generate superior returns from existing listed companies already embedded in the AI value chain.

That distinction explains why India continues to attract some of the world's largest AI investment commitments, even as HSBC's preferred portfolio allocations remain focused on China, Japan, South Korea and Singapore.

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