In a landmark announcement, Google's parent company Alphabet is set to invest $15 billion (£11.29 billion) in the establishment of an AI data hub in Visakhapatnam, Andhra Pradesh, India.
The facility will join Google’s global network of AI centers, which spans across 12 countries. Thomas Kurien, CEO of Google Cloud, revealed that this data hub will be the largest of its kind outside the United States, highlighting the significance of this investment in the tech realm.
The investment will occur over the next five years and is part of a broader trend where significant technology investments are increasingly directed towards India, a country known for its low data costs and burgeoning internet user base.
This will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country, shared Alphabet CEO Sundar Pichai, emphasizing the potential benefits for local businesses and consumers.
A formal agreement is expected to be signed Tuesday, reflecting the Andhra Pradesh government's commitment to digital development. The region's technology minister Nara Lokesh noted that the project represents a significant leap towards enhancing the state's global standing and innovation landscape.
This AI data hub will integrate cloud and AI infrastructure with sustainable energy systems and an improved fibre-optic network, aligning with the government's objective to expand data center capacity across the state.
As India's data center industry continues to thrive, fueled by an increased demand for cloud and AI services, this project is anticipated to expand further and solidify India’s position as a key player in the global tech ecosystem.
Investments like these are crucial as they represent not only a financial influx but also an opportunity for local talent and businesses to grow alongside advances in AI technology.