At an event on October 14, Google Cloud CEO Thomas Kurian said Google has invested $15 billion to build a data center for a new Artificial Intelligence Ecosystem in South India.
The investment will be rolled out over the next five years and will be Google 's largest AI center outside the US, Mr. Kurian said.
Previously, on October 13, the Minister of Human Resource Development of Andhra Pradesh state (India) Nara Lokesh valued this 1 gigawatt project at 10 billion dollars.
“This agreement comes after a year of intense discussions and tireless efforts,” Mr. Lokesh said in a post on social media platform X.
The investment will be made by Raiden Infotech, Google's Indian subsidiary, with plans to develop three campuses across the city of Visakhapatnam, India's Economic Times reported.
According to another report from Economic Times on October 13, state officials have planned to further ramp up such projects and expand the state's capacity over the next three years.
Many companies are now ramping up investments in infrastructure to keep up with the surging demand for cloud services globally as AI services become more prevalent.
In its second-quarter earnings report in July 2025, Google increased its capital expenditure forecast for 2025 to $85 billion, from $75 billion in February, due to "strong demand for cloud products and services."
Along with that is a plan to invest $25 billion in data center infrastructure and artificial intelligence over the next two years in states located on the largest US power grid.
India is increasingly attracting multinational companies, such as Microsoft and AWS, to invest in cloud infrastructure and AI in the country.
Data center fever in India
According to a report in May this year by investment management and real estate services firm Collier, India's current data center capacity is around 1.2 gigawatts – just a fraction of the global capacity.
However, this potential market is expected to more than double, surpassing the 3 gigawatt mark within the next five years.
That growth is attracting global data center companies, Indian billionaires and even luxury real estate developers, all betting on the sector, seen as the backbone of the country’s digital future.
These moves show the scale of ambition: databases once measured in tens of megawatts are now being planned in gigawatts, often by “hyperscalers,” or companies that consume enormous amounts of computing power.
Besides, India also has a lot of space to develop large-scale data centers. Compared to data centers in Europe, electricity costs in India are relatively low.
This, coupled with India's growing renewable energy capacity - a key factor for power-hungry data centers - makes the market even more attractive.
India is entering a golden moment where global cloud providers, homegrown AI and digitization companies are converging to create one of the world’s most vibrant data center markets.
Source: https://baovanhoa.vn/nhip-song-so/google-dau-tu-15-ti-do-la-xay-dung-trung-tam-du-lieu-lon-tai-an-do-174681.html
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