The XKeyscore programme, run by the National Security Agency (NSA), allowed analysts to search through vast databases containing e-mails, online chats and browsing histories of millions of individuals, the Guardian reported, citing documents provided by whistleblower Edward Snowden.
A February 2008 training material presentation for the XKeyscore programme included a map of locations of the surveillance servers, one of which appeared to be near New Delhi, according to the Guardian report.
US companies IBM, HP and Dell dominate the Indian server market, according to market research and analyst firm IDC. No Indian company makes computer or electronic chips that are key components of servers.
The United States House Permanent Select Committee on Intelligence said in a statement the report was misleading and that "the program is simply a tool used by our intelligence analysts to better understand foreign intelligence, including terrorist targets overseas."