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Tag: Data Centre

  • Google’s Andhra Investment a ‘Historic Loss’ for Karnataka, Says JD(S)

    The ruling Congress government in Karnataka has come under fire from opposition parties after Andhra Pradesh and Google inked a Memorandum of Understanding (MoU) on October 14 to build a top-notch AI data centre in Visakhapatnam. More than one lakh jobs are anticipated to be created by the $15 billion project, which is Google’s biggest investment outside of the US.

    Dr K Sudhakar, a former health minister and Chikkaballapura MP, stated on X that Andhra gains when Karnataka loses! Once the go-to place for multinational tech companies, Bengaluru and Karnataka are losing ground as a result of the Congress government’s indifference, haughtiness, and policy gridlock. Karnataka watches as jobs and opportunity shift to other places, while Andhra draws top-tier investments. Karnataka’s youth demand improved confidence, clarity, and governance.

    Political Players Calling it End of Tech Era for Bangalore

    Arvind Bellad, the deputy leader of the opposition, also blasted the current administration for all of the opportunities that were lost. “Bengaluru, which was once the Silicon Capital, is losing investors because of policy paralysis and arrogance,” he said. Instead of encouraging growth, ministers harm businesses. Karnataka’s economic narrative has been transformed into a governance catastrophe by the government.

    DK Shivakumar, the deputy chief minister, stated that he does not wish to respond to Andhra minister Nara Lokesh or anybody else. Bengaluru and Karnataka are unmatched. Bengaluru offers everything, from human resources and infrastructure to startups and innovation. There are about 25 lakh employees, including 2 lakh foreigners. The Centre receives 39–40% of its revenue from Bengaluru.

    Shivakumar added further that every day, he gets calls from leaders all over the world, and we talk about their needs. Many international businesses that previously operated out of rented offices are increasingly establishing campuses of their own. That is Bengaluru’s might. It is unmatched by any state in the nation.

    Janta Dal Calling it a ‘Big Blow’ to Karnataka

    The loss of Google’s AI project was referred to as a “major blow” to Karnataka by the Janata Dal (Secular), which cited missing investment possibilities and insufficient infrastructure. “The state loses the Google AI hub to Andhra Pradesh,” the party wrote in a tweet. Due to carelessness, Karnataka loses a project worth INR 1.3 lakh crore.

    A significant initiative that Karnataka missed out on: Google signs an MOU with Andhra Pradesh to establish #AIHub in Visakhapatnam, pledging INR 10,000 crore annually and 30,000 jobs. If a business-friendly atmosphere isn’t guaranteed, entrepreneurs might depart.

    Karnataka IT Minister Priyank Kharge expressed doubts about the sustainability of Andhra Pradesh’s incentives, which included subsidised land and water bills, free transmission, 100% GST reimbursement, and subsidies of INR 22,000 crore. “The ‘Global Investors Summit’ would not have drawn INR 10 lakh crore in investments this year if IT companies were leaving Karnataka,” said Karnataka Home Minister G Parameshwara.

    Quick
    Shots

    •Google inks $15 billion MoU with
    Andhra Pradesh to set up a world-class AI data centre in Visakhapatnam.

    •The project is expected to create
    over 1 lakh jobs, marking Google’s largest investment outside the US.

    •JD(S) and BJP leaders call it a
    “historic loss” and “major blow” for Karnataka.

    •Criticism mounts on Karnataka’s
    Congress government over policy paralysis and investor flight.

  • TCS’ $7 Billion India Data Centre Investment Faces Scrutiny Over Returns and Strategic Fit

    A $6 billion investment in artificial intelligence infrastructure has been launched by India’s IT giant Tata Consultancy Services, marking a significant shift from its conventional services-led business model to the capital-intensive realm of AI data centres. This is one of the company’s most ambitious investments to date.

    TCS announced plans to become the largest AI-led technology services company in the world at a time when India’s IT services behemoths were being severely criticised for missing out on the AI boom. Over the next five to seven years, the business intends to establish a new subsidiary in India that will create a co-location AI data centre with a capacity of up to 1 GW. The $6 billion question is whether this daring move would test TCS’s financial discipline or reinvent its growth story, as returns and synergies with its core services are questionable.

    Mix Reactions from Market Analysts Over TCS’ Move

    As the demand for AI throughout the world soars, some analysts see it as a smart move to ensure the future of the company; others caution that it’s a low-margin, high-capex diversion that could weaken TCS’s exceptional return profile. By putting its bank sheet to work at a time when the industry is pursuing AI scale, the effort represents an unusual change in direction for the typically conservative IT giant.

    TCS will use a co-location architecture in which clients bring in computing and storage while TCS provides the passive infrastructure. TCS stated in an analyst call following the release of its Q2 results on 9 October that it anticipates the capital intensity to be about $1 billion per 150 MW, with funding being structured through a combination of debt and equity, supported by financial partners.

    According to management, the first phase would be operational in 18 to 24 months, with the first anchor clients coming from Indian businesses, deep-tech AI companies, hyperscalers, and sovereign projects. TCS pointed out that although committed capacity is only 5–6 GW, India’s installed data centre capacity is now at 1.2 GW, but demand might increase by around 10 times over the next five to six years, offering a substantial income opportunity.

    The Core 5 Pillars of TCS’ AI Approach

    Beyond the data centre, management outlined five pillars of its AI strategy: building a future-ready talent model by investing in future-ready skills and hiring top talent locally. Hence, making AI real for clients through rapid builds, AI labs and offices, and value-chain solutions across industries; reframing every service line under a “human + AI” delivery blueprint.

    This strategy makes TCS AI-first by empowering employees to learn, experiment, and integrate AI into their daily work and fortifying ecosystem partnerships. The company aims to generate a steady flow of income from deep-tech, hyperscalers, pure-play AI companies, and Indian government and commercial businesses.

    TCS’s choice to invest in an AI data centre puts the company at an intriguing crossroads, where its renowned financial discipline meets the capital-hungry demands of the AI era, even though it posted a respectable quarter on low expectations. The outcome of this risk could determine the company’s future.

    Quick
    Shots

    •TCS wants to become
    the largest AI-led technology services company globally.

    •Analysts divided as
    some see it as future-proofing AI growth, others as low-margin, high-capex
    diversion.

    •The move puts TCS at a
    crossroads between financial discipline and AI-era capital demands,
    potentially shaping its growth trajectory.

    •AI
    data centre demand in India may grow 10x over next 5–6 years, offering
    substantial revenue potential.

  • Chhattisgarh Leads the Way with India’s First AI-Driven Data Centre Park

    Chhattisgarh Chief Minister Vishnu Deo Sai laid the cornerstone for the nation’s first artificial intelligence-based data centre park in Sector-22 of Nava Raipur on 3 May.

    The state-of-the-art complex, which spans 13.5 acres, is expected to put Chhattisgarh in the forefront of India’s technical advancement. Five megawatts of capacity will be available at first in the data centre park, with the ambitious goal of scaling to 150 megawatts.

     In a first for the nation, a 2.7-hectare section of the park is being transformed into a Special Economic Zone (SEZ) dedicated solely to AI-based services. As the project grows, an additional investment of Rs 2,000 crore is anticipated.

    This development is revolutionary not only because of its scope but also because of its ambition. The centre will function as a centre for high-performance computing, providing services in AI, FinTech, HealthTech, Defence, and data analytics, with a particular emphasis on green, energy-efficient technologies.

    CM Sai described the project as “transformational” for the state’s youth, farmers, and tribal groups, saying it is more than simply a data centre and serves as the digital foundation for a new era of empowerment and growth.

    State-of-the-Art Facility

    The facility will be firmly among the world’s best thanks to its GPU-based architecture for real-time data processing, live streaming, and AI-powered analytics.

    With a focus on local youth, the programme aims to generate 2,000 jobs, with 500 direct and 1,500 indirect employment opportunities anticipated. The park makes Chhattisgarh a new hub for high-tech companies by bringing together AI computing, data processing, storage, and analytics under one roof.

    Connecting Agriculture Sector with Technology

    AI tools, weather forecasting, real-time crop monitoring, and intelligent supply chain solutions will all help smart farming and directly benefit regional agriculture. Remote tribal territories will be connected by digital infrastructure, enabling previously underserved areas to access online government, telemedicine, and e-education.

    By managing both internal and international data traffic, the centre will lessen Chhattisgarh’s reliance on outside infrastructure and move the state closer to becoming digitally independent.

    CM Sai declared, “Chhattisgarh is ready to become the heartbeat of Digital India,” as the state confidently stepped towards a more intelligent, quicker, and inclusive digital future.

    The opening of India’s first AI-based data centre park in Raipur represents a wise step towards more sophisticated technology for the whole country. It’s anticipated that Chhattisgarh’s use of AI to advance sustainable development goals and build a stronger community would serve as an example for other states aiming to create a more technologically advanced India.

    By highlighting AI technologies, the state hopes to raise economic activity, improve the administration of public resources, and improve the quality of services offered.

  • OpenAI in Negotiations to Establish Data Centre in India

    According to a media outlet, OpenAI, the company behind ChatGPT, has started the process of establishing data centre operations in India. Data from users in India and a few of its smaller bordering nations is probably stored at the hub. According to sources cited in the story, OpenAI is now speaking with a few data centre operators, although these are only the very beginning stages of their strategy.

    They could need some time to go over specifics like the venue and capacity. According to the report, the AI behemoth is eager to finish the procedure by 2025 but has not established a deadline. The majority of OpenAI’s servers are housed in data centres in the US state of Texas. The creator of the well-known chatbot serves consumers worldwide, including those in India, by utilising Microsoft’s Azure Cloud services.

    India Second Biggest Market for OpenAI

    CEO Sam Altman stated during his recent trip to India that the country is OpenAI’s second-largest market, with a threefold increase in users in the last 12 months. “I observe that folks in India are utilising AI in various aspects of the stack, including chips, models, and other amazing applications. Therefore, I believe that India ought to take the lead. During a fireside talk with IT minister Ashwini Vaishnaw on February 5, Altman stated, “I believe India should be among the leaders of the AI revolution.”

    “That’s a reference to a comment I made here a few years ago about cost,” Altman said, attempting to elucidate a statement that caused controversy on his previous visit to India. That might have been taken out of context. At that particular moment, there was a scaling issue, and I still believe it is costly to remain on the cutting edge of pre-trained models,” he said.

    He was questioned if a small team could produce a substantial AI model on a $10 million budget while he was in India in 2023. “It’s totally hopeless to compete with us on training foundation models,” he’d stated. It was long before the low-cost AI helper from Chinese company DeepSeek rocked the IT industry.

    Tug of War Between Open AI and Chinese DeepSeek

    Sam Altman’s tour takes place at a time when OpenAI is facing significant challenges due to the emergence of DeepSeek, a Chinese AI search engine platform that claims to have developed AI models that can compete with the best models from US firms like OpenAI, Meta, and Google at a far lower cost. India has one of the biggest populations and developer pools in the world.

    OpenAI will be able to increase its earnings by establishing a physical base in the nation. The trip coincides with a wave of copyright infringement cases against the AI giant for allegedly exploiting local digital platforms’ and book publishers’ content to train its chatbot ChatGPT without permission.

    Meanwhile, OpenAI has apparently started talking about data localisations in an effort to ward off any additional regulatory obstacles. The corporation wants to store its Indian consumers’ data in the nation itself as part of this. Since India is one of the company’s largest developer ecosystems, OpenAI is naturally seeking methods to increase its presence there.

    In preparation for the Digital Personal Data Protection Act of 2023, it has already started talking about ways to localise the data of its Indian citizens in domestic data centres. A person with knowledge of the development told Livemint that the drive to localise data operations is probably going to start soon.

    DeepSeek to Operate on Indian Servers, Says Union Minister
    Union Minister confirms DeepSeek will soon run on Indian servers, addressing privacy concerns and enhancing data security for Indian users.
    StartupTalkyNitin Konde