Tech giant Google has announced an AI hub in Andhra Pradesh’s Visakhapatnam in order to deploy its full AI stack in India.
The hub, which Google is developing in partnership with AdaniConneX and Airtel, will consist of a gigawatt-scale data centre operation, and the construction of a new international subsea cable gateway: which will allow multiple international subsea cables to land on India’s eastern coast in Visakhapatnam.
“The gateway will help the country meet surging digital demands and provide route diversity to complement existing subsea cable landings in the Mumbai and Chennai areas,” Google says. Notably, it claims that this will help deliver faster experiences to Google users.
The tech giant is investing $15 billion in this project over the next five years (between 2026-2030), which is the company’s largest investment in India. Google explains that its AI Hub will deliver “high-performance and low-latency services that businesses and organisations need to build and scale their own AI-powered solutions, accelerate research and development”.
Rising AI-related Big Tech investments in India:
Google isn’t the first company to make data centre investments in India. In January this year, Microsoft annouced that it will invest $3 billion in India in cloud, AI infrastructure and AI skilling over the next two years. The company mentioned that its investments would include the establishment of new data centre campuses across the country, adding to its three existing data centres, with plans to get a fouth operational by 2026.
“This investment aims to develop a scalable AI computing ecosystem to meet the growing demands of India’s rapidly expanding AI startups and research community,” Microsoft had mentioned at the time.
Similarly, reports suggest that OpenAI is planning to establish a new data centre in India with at least one gigawatt capacity as part of the $500 billion Stargate project. The company is reportedly looking for local partners for the project, as well as securing land and regulatory approvals.
Why are Big Tech companies investing in data centres in India?
One of the reasons why it makes sense for Big Tech companies to make data centre investments in India is because these companies can use them for a myriad of purposes for their operations. Microsoft admitted the same last year during its earnings call when an investment firm representative pointed out the industry debate around whether capital expenditure on AI will match monetisation.
At the time, Microsoft’s Chief Financial Officer Amy Hood had mentioned the flexibility of these investments. “Because we’ve built a consistent architecture, first with a commercial cloud, and second with the Azure stack for AI, regardless of whether demands [are] at the platform layer or at the app layer, or through third parties and partners, or, frankly, our first-party SaaS [software as a service], it uses the same…
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