Google is preparing to bolster India’s AI Cloud with a USD $6 billion investment in a data center in Andhra Pradesh, its largest investment in Asia.
The facility will be a 1-gigawatt project in Vishakhapatnam; the facility will also be Google’s first data center in India and will be a significant step in its global USD $75 billion data centre expansion initiative.
Of the total investment, USD $2 billion will be used to develop renewable energy capacity to support the facility’s sustainable energy requirements. The overall project will transform India’s place in the global digital economy in the face of heightened demand for AI and cloud computing infrastructure in the country.
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This strategic investment comes as technology companies are competing to establish a growing presence in India. Microsoft has announced a USD $3.7 billion investment to expand its AI and cloud infrastructure in India and Amazon has a plan to invest USD $13 billion by 2030. Furthermore, companies like Blackstone, OpenAI, NTT Data, and Reliance Group are pursuing large scale data infrastructure projects in India.
After losing Hyderabad to Telangana, Andhra Pradesh has been courting tech investments aggressively. State IT Minister Nara Lokesh confirmed that commitments for 1.6 GW of data center capacity are already in place, with a vision to reach 6 GW in five years. The state is also preparing to meet the projected 10 GW power demand, largely through renewables.
To support this growth, three new undersea cable landing stations are planned in Visakhapatnam, aiming to provide international bandwidth double that of Mumbai.
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