On August 18, 2025, EY India announced the appointment of Gaurav Bhalotia, former CTO of Udaan, as its new Chief Technology Officer (CTO)—a move emblematic of the seismic shifts underway in India’s technology sector. Bhalotia’s arrival comes at a time when India, along with other emerging markets, is rapidly positioning itself at the heart of a global artificial intelligence (AI) infrastructure revolution. This is no small feat. The stakes are high, the competition is fierce, and the future of digital transformation across continents is being written in real time.
Bhalotia’s mandate at EY India is clear: lead the firm’s technology and innovation strategy with a sharp focus on building AI-powered, software-driven business solutions. "I look forward to helping build intelligent, scalable platforms and to driving technology-led innovation that will power the next phase of EY’s growth," Bhalotia stated, reflecting both the urgency and optimism that define this new era. According to Analytics India Magazine, his appointment signals EY India’s commitment to accelerating the development of AI tools that help clients manage digital transformation—across everything from supply chains and tax compliance to risk management and financial reporting. With over 20,000 professionals already working on technology-led consulting solutions, EY India is hardly starting from scratch.
But the story is much bigger than one company or one country. As reported by AInvest, the global AI infrastructure boom is no longer the exclusive domain of Silicon Valley or Shanghai. By 2025, emerging markets have become the epicenter of a transformative wave of investment, driven by the urgent need to digitize economies, automate industries, and compete in a post-pandemic world. Institutional investments in large-scale AI and generative AI are projected to reach a staggering $110 billion by 2028, growing at a brisk 24% compound annual growth rate (CAGR) from 2023. This is not just about pouring money into data centers or GPUs; it’s about reimagining entire economic ecosystems—something that’s happening at breakneck speed in India and beyond.
Consider India’s own IndiaAI Mission, which has allocated $1.2 billion to create a national AI infrastructure framework. This ambitious initiative aims to lay the foundation for the country’s digital future, ensuring that AI is not just a buzzword but a practical tool for economic modernization. China, too, has made bold moves, investing $30 billion in AI industrial parks in innovation hubs like Shenzhen and Chengdu. Governments in Brazil, Indonesia, and South Africa are following suit, prioritizing AI infrastructure as a cornerstone of their economic strategies. The message is clear: in today’s world, AI is not a luxury—it’s a necessity for national competitiveness.
The shift is also happening within the technology stack itself. While early AI investments focused on the lower stack—hardware and hyperscalers—the current wave is all about the upper stack: customer-facing applications that generate real-world value. AI-enabled platforms for enterprise workflows, healthcare diagnostics, and smart cities are now delivering measurable returns on investment. For instance, ServiceNow’s Pro Plus SKU, an AI-powered enterprise workflow tool, has already surpassed $250 million in annual contract value, with projections to hit $1 billion by 2026.
This transformation is having a dramatic impact on equity valuations. According to AInvest, AI infrastructure investments are creating structural bottlenecks in supply chains for semiconductors, cloud services, and energy. Companies like NVIDIA and TSMC are seeing extraordinary gains: NVIDIA’s stock has soared 300% since 2023, and TSMC’s AI-related revenue is expected to double in 2025 as it ramps up production of cutting-edge 2nm and 3nm chips. But perhaps the most intriguing opportunities are emerging in local firms across Asia, Africa, and Latin America—companies that are building AI infrastructure tailored to regional needs.
Take Southeast Asia, for example, where edge AI deployments are enabling real-time industrial automation and smart agriculture, with 5G networks providing the backbone. These innovations aren’t just reducing costs; they’re creating entirely new revenue streams. Or look at Tesla’s Optimus Gen 2 humanoid robot, which has halved in weight and doubled in dexterity. While developed in the U.S., its deployment in logistics and eldercare is being fast-tracked in countries like Japan and India, where labor shortages are particularly acute.
For investors, the urgency to act is palpable. While valuations for AI infrastructure in emerging markets remain discounted compared to developed economies, the window of opportunity is closing. The advice from analysts is straightforward: focus on semiconductor and foundry plays, regional cloud and edge providers, firms aligned with sovereign AI initiatives, and companies offering cybersecurity and governance solutions. For example, Indian and South Korean firms are pioneering energy-efficient cooling systems for high-density data centers, while regional cloud platforms like Alibaba Cloud and AWS’s India-specific services are expanding AI-native infrastructure. Edge computing firms in Brazil and Indonesia are also gaining traction, offering low-latency solutions crucial for smart cities and industrial IoT.
Of course, the road ahead isn’t without its bumps. Power shortages, talent gaps, and regulatory uncertainty loom large. It’s estimated that 40% of AI data centers in emerging markets will face power constraints by 2027, and more than half—53%—of AI projects are delayed due to a shortage of skilled engineers. Yet, these challenges are being tackled head-on through public-private partnerships and ambitious training programs. The sense of momentum is undeniable, and the risks, while real, are being actively managed.
Back at EY India, Bhalotia’s appointment is a microcosm of this broader story. His leadership is expected to further accelerate the firm’s efforts to harness AI for business transformation, helping clients navigate the complexities of digital change. It’s a tall order, but one that aligns perfectly with the national and global trends reshaping the industry. As Prashant Singhal, India Markets Leader at EY, emphasized, the focus is on "building intelligent, scalable platforms"—the very hallmark of the new AI-driven economy.
As of August 2025, the AI infrastructure boom in emerging markets is still in its early stages, representing what many analysts describe as a once-in-a-generation investment opportunity. The $110 billion projection by 2028 isn’t just a headline—it’s a call to action for those willing to bet on the next phase of the AI revolution. For firms like EY India, for governments across continents, and for investors eyeing the future, the message is the same: the time to act is now. Those who hesitate risk being left behind in a world where AI is rapidly becoming the backbone of economic growth and competitiveness.
With leaders like Gaurav Bhalotia at the helm and billions pouring into national AI strategies, the digital transformation of entire economies is no longer a distant dream—it’s happening, right here and right now.
