Google may boost Andhra Pradesh investment beyond $15 billion, says Chandrababu Naidu
Alphabet Inc.’s Google is expected to increase its investment in Andhra Pradesh to more than $15 billion in five years, according to the leader of the south Indian state.
Speaking in an interview in the port city of Visakhapatnam on Saturday, Chief Minister N. Chandrababu Naidu said the US-based company’s plans to build a data center in the state were “just the beginning”. Asked whether Google would consider doubling its investment after the initial five-year period, he said: “That’s always an opportunity under their push.”
“Starting with $15 billion in five years is a win-win situation,” Naidu said of Google’s plans.
He added that Andhra Pradesh has committed to setting up 5.5 GW of data centers from companies including Reliance Industries Ltd. This, he said, would be accompanied by plans to increase green energy production.
“This data flow is cost-effective compared to power consumption,” Naidu said. “This is the game changer. Now everyone is coming to Andhra Pradesh.”
“It will become a global hub for data centers,” he added.
Last month, Google announced its data center in Visakhapatnam, connected to new energy sources and fiber optic network. Indian businessman Gautam Adani said his company AdaniConneX will partner with Google along with the country’s No. 2 wireless operator Bharti Airtel on the project.
Google said the project is its largest investment to date in India and will underpin the regional government’s plan to accelerate the AI industry locally.
Google representatives did not immediately respond to Naidu’s comments on Saturday.
Google has joined US tech leaders to invest in India, one of the biggest beneficiaries of the worldwide AI boom. Amazon.com Inc. plans to invest $12.7 billion to build cloud infrastructure in the South Asian country by 2030, while ChatGPT creator OpenAI plans to build a 1 gigawatt data center in the region. Investments in India’s data center market are expected to exceed $100 billion by 2027, according to CBRE Group Inc.
Goldman Sachs Research estimates the world will have approximately 122 GW of online data center capacity by the end of 2030. While data centers contribute to growing energy needs, the electrical grid is estimated to require approximately $720 billion in grid spending by 2030.
Indian Prime Minister Narendra Modi has praised technology as key to strengthening the local economy and lifting millions out of poverty. But the country faces challenges to its development goals as limited water supplies and unreliable electricity service remain serious bottlenecks.
Naidu targets 15% economic growth for the state and aims to attract $1 trillion in the next 10 years.
Naidu’s regional Telugu Desam Party is also key to the stability of Modi’s ruling coalition in New Delhi. The Andhra Pradesh leader hailed the national government as “very strong, very stable”, noting Modi’s party’s landslide victory in state elections in Bihar, results of which were announced this week.
“Winning the election is a message to the global community and also to the local people,” Naidu said. “Local people will move very quickly because of the stability.”
