Tech giant Google plans to inject more than 520 billion Indian rupees into Indian territory for the construction of Asia's grandest data center, as per the latest reports.
In a significant move, Google has announced plans to invest $6 billion in a 1-gigawatt data center in Andhra Pradesh, India. This will be the tech giant's first such investment in the country and is part of Alphabet's $75 billion global commitment to data center expansion.
The data center, located in the coastal city of Visakhapatnam, is expected to be the largest in Asia in terms of capacity and capital outlay. This investment is seen as a potential game-changer for India's position in the global digital economy.
Andhra Pradesh's IT minister expects a surge in energy demand, estimating that 10 GW of power, primarily renewable, will be required to support data center operations in the coming years. In line with this, the state is planning to enhance its connectivity infrastructure with three new undersea cable landing stations in Visakhapatnam. These stations aim to offer international bandwidth capacity 'two times what Mumbai has today.'
The government of Andhra Pradesh encouraged Google to establish a 1-gigawatt data center in the state, supporting its goal to build 6 GW of data centers in 5 years as part of a major energy infrastructure growth plan. The state has already secured commitments for 1.6 GW of data center capacity and aims to build 6 GW over the next five years.
Notably, other major players in the industry are also considering large-scale data center projects in India. Investment firm Blackstone, OpenAI, NTT Data, and Reliance Group are reportedly considering such projects. Microsoft has pledged $3.7 billion toward its cloud and AI infrastructure in India, and Amazon has committed $13 billion for its cloud and AI infrastructure in India by 2030.
This investment comes despite prevailing macroeconomic uncertainties, demonstrating Google's confidence in India's digital future. $2 billion of the investment will be allocated for the development of renewable energy capacity, further emphasizing Google's commitment to sustainable practices.
This development is expected to create numerous job opportunities and boost the digital economy, positioning India as a key player in the global tech landscape.
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