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Tag: Data Centers

  • Google to Invest $15 Billion in Mega Data Center Cluster in Visakhapatnam

    According to reports, Google intends to invest $15 billion, or around INR 88,774.2 crore, to construct a data centre cluster with a 1 GW capacity spread across three campuses in Visakhapatnam, Andhra Pradesh. According to sources cited by ET, the cluster will have three data centre campuses with high-capacity underwater cables, specialised cable landing stations, and a vast network of metro fibre and telecommunications lines.

    The data centres will be a key component of India’s aspirations to become a global powerhouse for digital and artificial intelligence infrastructure, and they are anticipated to be operational by July 2028. On October 14, Andhra Pradesh IT Minister Nara Lokesh is scheduled to conclude the deal with Google executives. The State Investment Promotion Board, which is led by Chief Minister N Chandrababu Naidu, will sanction the project today, the newspaper also stated.

    Google’s Visakhapatnam’s Data Centre Cluster to be Asia’s Largest Centre

    According to reports, Visakhapatnam’s data centre cluster would be the biggest in Asia. Alphabet was reportedly on track to invest $6 billion in Andhra Pradesh to construct a 1 GW data centre and related power infrastructure in July. “We’ve made certain announcements like Sify (a 550 MW data centre to be built in the state), which are public,” Lokesh told Reuters at the time. Some announcements are not yet available to the general public. We will make such announcements in October.

    This occurs at a time when the need for data centres is increasing due to the rapid adoption of AI and the growing prevalence of smartphones. The data centre industry in India is expected to increase from $4.5 billion in 2023 to $9.3 billion by 2027 and over $11.6 billion by 2032, making it one of the largest markets in terms of smartphone usage and AI adoption.

    OpenAI, the parent company of ChatGPT, is also seeking to establish a data centre in India with a minimum capacity of 1 GW, while Reliance is constructing a data centre in Jamnagar. After Sam Altman’s trip to India, the new facility would be finalised, which would be a significant step forward for “Startgate” in Asia.

    Quick Shots

    •Google to invest $10 billion (INR 88,774.2 crore)
    to build a mega 1 GW data centre cluster in Visakhapatnam, Andhra Pradesh.

    •The cluster will comprise three campuses with
    underwater cables, cable landing stations, and metro fibre networks.

    •Project expected to be operational by July 2028.

    •Andhra Pradesh IT Minister Nara Lokesh to finalise
    the deal with Google executives on October 14.

    •State Investment Promotion Board, chaired by CM N.
    Chandrababu Naidu, to approve the project today.

    •The Visakhapatnam cluster will be Asia’s largest
    data centre.

  • Centre Proposes 20-Year Tax Exemption for Data Centres to Boost Digital Infrastructure

    The Centre has suggested that data centre developers receive a 20-year tax exemption in an effort to boost the data centre sector. Developers that satisfy the goals for capacity expansion, power usage efficiency, and job creation would be exempt from taxes, as per the draft National Data Centre Policy 2025, which Business Standard analysed.

    According to the report, the Ministry of Electronics and Information Technology (MeitY) is likely to ask the Finance Ministry to permit input tax credit on GST, which is imposed on capital assets like data centre construction, HVAC, air conditioning, and other electronic equipment used in data centres.

    “The government’s proposal of a 20-year tax exemption for data centers is a visionary step that underscores India’s commitment to building a robust digital-first economy. Data centers form the backbone of our digital ecosystem, and this move will not only attract significant domestic and global investments but also accelerate the growth of allied industries such as cloud services, AI, IoT, and interconnection platforms. Such forward-looking incentives act as catalysts that empower enterprises, SMEs, and ISPs to accelerate innovation and growth with renewed confidence. A 20-year tax holiday offers long-term clarity for investors, paving the way for world-class infrastructure, regional data sovereignty, and advanced interconnection. This certainty strengthens India’s digital foundation while ensuring faster, safer, and more dependable services for businesses and citizens alike,” opined Sudhir Kunder, Chief Business Officer, DE-CIX India.

    Draft Policy Currently Being Reviewed

    Stakeholders are presently receiving the draft policy for review and comment. To make power accessible to data centres, the draft policy suggests that the IT ministry work with the Central Electricity Authority, the power ministry, and other important government-led organisations.

    The goal of the policy is to stimulate the sector in light of the growing need for data centres. By 2030, India’s internet user base is predicted to reach 1.2 billion, necessitating the construction of data centre-powered cloud infrastructure. In addition, the need for data centres—which are essential to AI—has increased dramatically as a result of the technology’s quick adoption. To train and implement complicated AI models, data centres offer the processing power, fast networking, and massive storage required.

    With an investment of more than INR 10,000 Cr, the Centre notably announced the IndiaAI Mission, which aims to build AI compute infrastructure through a public-private partnership and create AI foundational models encompassing key Indian languages for important areas including governance, healthcare, and agriculture.

    Data Centres Alluring Foreign Investments

    Many international AI and large tech businesses are investing in the nation’s data centre market, encouraged by the increase in the use of AI. For example, OpenAI intends to establish a data centre in India and is seeking to collaborate with regional companies to build a facility with a minimum capacity of one gigawatt (GW).

    In Andhra Pradesh, Google also intends to invest $6 billion to construct a 1 GW data centre and related power infrastructure. The IndiaAI Mission has chosen three AI startups to create domestic AI models in India: Soket AI Labs, Gnani.ai, and Gan.ai. According to the Economic Survey for 2024–2025, the data centre market in India is anticipated to grow to a value of $11.6 billion by 2032.

    Quick
    Shots

    •Developers must meet goals on capacity expansion,
    power efficiency, and job creation to qualify.

    •Input tax credit on GST for capital assets like
    HVAC, AC, and electronic equipment also under consideration.

    •Draft policy suggests collaboration with CEA and
    power ministry to ensure reliable electricity supply.

    •India’s internet users projected to reach 1.2
    billion by 2030, driving demand for cloud and data centres.