Google set to pour over 520 billion Indian rupees into Indian state for construction of Asia's biggest data center, according to a report.
Google to Invest $6 Billion in India's Largest Data Center, Boosting Digital Infrastructure
In a significant move, Google has announced plans to invest $6 billion in establishing a 1-gigawatt data center in Visakhapatnam, Andhra Pradesh, India. This marks Google's first such investment basics in the country and is expected to be the largest data center in Asia in terms of both capacity and capital outlay.
The investment is part of Alphabet's $75 billion global commitment to data center expansion. The project comes amidst a wider digital infrastructure race in India, with various tech giants vying for a larger share in the growing India market.
In addition to Google, companies such as OpenAI, Microsoft, Reliance Industries, and Equinix are participating in the expansion of India's digital infrastructure through large-scale data center projects. Equinix alone has invested $69 million in its Chennai data center, while the overall Indian data center market is projected to reach about $5 billion by 2025 with a capacity of around 1,700 MW.
Andhra Pradesh's IT minister, Nara Lokesh, estimates that 10 GW of power, primarily renewable, will be required to support data center operations in the coming years. To enhance its connectivity infrastructure, the state is planning to build three new undersea cable landing stations in Visakhapatnam.
Amazon has committed $13 billion for its cloud and AI infrastructure in India by 2030, while Microsoft has pledged $3.7 billion toward its cloud and AI infrastructure in the country. The aim is to offer international bandwidth capacity 'two times what Mumbai has today.'
The investment is expected to transform India's position in the global digital economy. Andhra Pradesh has secured commitments for 1.6 GW of data center capacity and aims to build 6 GW over the next five years.
Moreover, $2 billion of the investment will be allocated toward the development of renewable energy capacity for the data center, aligning with India's commitment to sustainable energy solutions.
Investment firm Blackstone, along with OpenAI, NTT Data, and Reliance Group, are reportedly considering large-scale data center projects in India, further fueling the digital infrastructure race. This development underscores the growing importance of India in the global tech landscape and the significant investments being made to support its digital growth.
