Google To Invest $10 Bn To Establish Data Centre Cluster

SUMMARY

Google is planning to to build a 1 GW capacity data centre cluster across three campuses in Andhra Pradesh’s Visakhapatnam

The cluster will have three data centre campuses with high-capacity submarine cables, dedicated cable landing stations, and extensive metro fibre and telecommunications lines

The data centres are expected to become operational by July 2028 and will serve as a core pillar for India’s ambitions as a global digital and AI infrastructure hub

Alphabet-owned Google is reportedly planning to invest $10 Bn (about INR 88,774.2 Cr) to build a 1 GW capacity data centre cluster across three campuses in Andhra Pradesh’s Visakhapatnam.

The cluster will have three data centre campuses with high-capacity submarine cables, dedicated cable landing stations, and extensive metro fibre and telecommunications lines, ET reported, citing sources.

The data centres are expected to become operational by July 2028 and will serve as a core pillar for India’s ambitions as a global digital and AI infrastructure hub. Andhra Pradesh IT minister Nara Lokesh is set to finalise the agreement with Google’s top executives on October 14.

The report added that the State Investment Promotion Board, chaired by chief minister N Chandrababu Naidu, will approve the project today.

The data centre cluster in Visakhapatnam would be the largest in Asia, the publication said.

Inc42 has reached out to Google for comments on the development. The story will be updated on receiving responses.

Notably, the state government has ambitions of building 6 GW of data centres over the next five years.

In July, it was reported that Alphabet was on track to invest $6 Bn to build a 1 GW data centre and allied power infrastructure in Andhra Pradesh.

“We’ve made certain announcements like Sify (550 MW data centre to be built in the state), which are public… There are certain announcements which are not yet public. In October, we will make those announcements,” Lokesh told Reuters then.

This comes at a time when rising smartphone penetration and rapid adoption of AI is leading to a rise in demand for data centres. India, being one of the biggest markets in terms of smartphone usage and AI adoption, is seeing a lot of investments in data centres, with the country’s data centre market projected to grow to $9.3 Bn by 2027 and over $11.6 Bn by 2032 from $4.5 Bn in 2023.

While Reliance is building a data centre in Jamnagar, ChatGPT parent OpenAI is also looking to set up a data centre in India of at least 1 GW capacity. The new facility would be finalised post Sam Altman’s visit to India and would mark a major push for ‘Startgate’ in Asia.