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Google to Invest $15 Billion in AI Data Centre to Power India’s Digital Future

Google to Invest $15 Billion in AI Data Centre to Power India’s Digital Future

Google office building in Hyderabad, India

Google announced a $15 billion investment over five years to build an artificial intelligence data centre in Andhra Pradesh, marking its largest project in India. The tech giant views the country as a major growth market, with nearly a billion internet users and strong demand for AI-driven services.

The upcoming facility will be located in the southern port city of Visakhapatnam. Initially, it will operate at 1-gigawatt capacity and later expand to multiple gigawatts. The centre will be part of a global network of AI facilities across twelve countries.

Earlier estimates had placed the investment at around $10 billion. However, new figures confirm the total commitment to be significantly higher. The project is expected to create about 188,000 jobs, offering a substantial boost to local employment and technological infrastructure.

Expanding AI Infrastructure Globally

This investment comes as part of Google’s broader $85 billion global plan for data centre expansion this year. Companies worldwide are racing to enhance their computing capacity, as artificial intelligence increasingly depends on large-scale, specialized facilities that can interconnect thousands of processing chips.

Other tech leaders have already poured billions into India’s data infrastructure. Additionally, local conglomerates have announced major ventures to build similar capacities. Together, these developments underscore India’s emergence as a competitive hub in the global AI ecosystem.

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Opportunities and Challenges Ahead

While the investment highlights confidence in India’s digital economy, it also brings challenges. Alphabet Inc., Google’s parent company, faces ongoing scrutiny from regulators in the country. Several antitrust investigations have questioned its practices in markets such as YouTube and Android. The company also faces a lawsuit related to YouTube’s AI policy.

Despite these hurdles, India remains crucial to Google’s strategy. The country leads in YouTube usage and Android smartphone adoption. With this major data centre investment, Google aims to strengthen its presence and meet the surging demand for AI capabilities worldwide.

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