Google to Exceed $15B in India Data Hub Overhaul, Confirms Chief Minister Naidu

Alphabet’s Momentum Eases Despite Strong Earnings and Legal Wins

Quick overview

  • Google plans to invest over $15 billion in Andhra Pradesh over the next five years, with a focus on constructing a data center.
  • Chief Minister Chandrababu Naidu mentioned that this investment could potentially double after the initial five years.
  • The project will be supported by partnerships with companies like Reliance Industries and AdaniConneX, aiming to enhance green energy production.
  • This investment marks Google's largest commitment in India, aligning with the country's growing AI sector and data center market.

Google is anticipated to increase its investment in Andhra Pradesh beyond $15 billion after five years, according to the leader of the southern Indian state, Chief Minister Chandrababu Naidu stated that the US-based company’s plans to construct a data center in the state are “to start with” during an interview on Saturday in the port city of Visakhapatnam.

When asked if Google would consider doubling its investment after the first five years, he responded, “It is always an opportunity under their compulsions.”

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Regarding Google’s plans, Naidu stated, “It is a win-win situation to start with $15 billion within five years.”. He continued by saying that businesses like Reliance Industries have committed to building 5.5 GW of data centers in Andhra Pradesh. According to him, that will support plans to increase the production of green energy.

Google revealed the Visakhapatnam data center connected to a fiber-optic network and renewable energy sources. Gautam Adani, an Indian businessman, announced that his company, AdaniConneX, would collaborate on the project with Google, in addition to Bharti Airtel, the nation’s second-largest mobile carrier.

According to Google, the project is its largest investment in India to date and will serve as the cornerstone of the regional government’s strategy to boost the AI sector locally.

Google has invested in India, one of the major recipients of the global AI boom, alongside other US tech giants.  Amazon.com plans to invest $12.7 billion in developing cloud infrastructure in the South Asian nation by 2030, and OpenAI, the company behind ChatGPT, aims to establish a 1-gigawatt data center there.

CBRE Group Inc. predicts that by 2027, investments in India’s data center market will surpass $100 billion. By the end of 2030, there will be about 122 GW of online data center capacity worldwide, according to Goldman Sachs Research.

ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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