Adani Group is planning a substantial investment of up to $5 billion in Google's artificial intelligence (AI) data center project in India, aiming to capitalize on the country's surging demand for data capacity and AI infrastructure. This move aligns with Google's own commitment to invest $15 billion over the next five years to establish an AI data center in Andhra Pradesh, marking its largest investment in India.
The partnership between Adani and Google aims to create India's largest AI data center campus in Visakhapatnam, Andhra Pradesh. This campus will not only feature advanced AI infrastructure but also incorporate new green energy sources and an expanded fiber-optic network. The data center is projected to commence operations with a power capacity of 1 gigawatt, positioning it among the largest facilities of its kind in Asia.
Jugeshinder Singh, CFO of Adani Group, highlighted the potential for further collaborations, stating that numerous parties have expressed interest in partnering with them, particularly as data center capacity scales to gigawatt levels and beyond. He also mentioned that the details of the investment are still being finalized.
Google's broader strategy involves a global investment of approximately $85 billion this year to expand its data center capacity, reflecting the heavy investments tech companies are making to meet the growing demand for AI services. This surge in AI deployment has created unprecedented demand for high-density, high-power data centers capable of linking thousands of compute chips.
Gautam Adani, Chairman of the Adani Group, emphasized the strategic importance of this partnership, stating, "The Adani Group is proud to partner with Google on this historic project that will define the future of India's digital landscape. This is more than just an investment in infrastructure. It is an investment in the soul of a rising nation".
The Adani Group plans to raise approximately INR 90,000 crore in debt in the next financial year, earmarking a capital expenditure of INR 1.5 lakh crore for the same period. AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, will play a crucial role in driving the capital planning, infrastructure development, and execution of the data center project.
India's data center market is experiencing a boom, with projections estimating investments between $30 billion to $1.6 trillion over the next five years to support rising data consumption and AI growth. Experts predict India's overall data center market to exceed $100 billion by the end of 2027.
The development of the AI hub and connectivity gateway is expected to stimulate economic growth in Visakhapatnam, Andhra Pradesh, and across India, fostering digital inclusion and generating numerous jobs in technology, construction, and clean energy.
This investment by Adani follows a trend of significant investments in India's data center infrastructure by both domestic and global players. Digital Connexion, a joint venture involving Reliance Industries, recently signed an $11 billion investment agreement to build new data center capacity in Visakhapatnam.
The Adani Group's investments in Andhra Pradesh span multiple sectors, including ports, logistics, and renewable energy. The group operates two of the state's largest private ports at Krishnapatnam and Gangavaram and is committed to developing 15,000 MW of renewable power projects and 10 million tonnes per annum of cement manufacturing capacity in the state.
