The Adani Group is planning a substantial investment of up to $5 billion in Google's upcoming artificial intelligence (AI) infrastructure hub in southern India. This commitment, revealed by Adani Group's Chief Financial Officer Jugeshinder Singh, underscores the rapidly growing data center business in India and the increasing demand for AI computing resources. The investment details are still being finalized.
This collaboration between Adani and Google aims to develop India's largest AI data center campus in Visakhapatnam, Andhra Pradesh. This initiative is part of Google's broader $15 billion investment plan over five years (2026-2030) to establish an AI hub in Visakhapatnam. The hub will feature gigawatt-scale data center operations, supported by a robust subsea cable network and clean energy infrastructure, designed to handle demanding AI workloads.
The Adani-Google partnership extends beyond mere infrastructure development. It includes co-investment in new transmission lines, clean energy generation, and innovative energy storage systems within Andhra Pradesh. This commitment to sustainability will not only support the data center's operations but also enhance the resilience and capacity of India's electricity grid.
Gautam Adani, Chairman of the Adani Group, emphasized that this partnership is more than just an infrastructure investment; it's an investment in the future of a rising nation. He highlighted the shared vision of nation-building and empowering Indians with the tools of the 21st century. Thomas Kurian, CEO of Google Cloud, echoed this sentiment, stating that the investment in the Google AI hub will provide the critical foundation for growth, enabling businesses, researchers, and creators to build and scale with AI.
The development aligns with the global trend of governments and corporations investing heavily in AI hardware. India's data center market is projected to exceed $100 billion by 2027, attracting significant investment from both domestic and global players. Recently, Reliance Industries signed an $11 billion investment pact for building data centers in Visakhapatnam, while Tata Consultancy Services secured $1 billion from TPG Inc. to accelerate its data infrastructure efforts.
Visakhapatnam is emerging as a key hub for AI and data center development. In addition to Adani and Google, other major players like Reliance, Airtel, and Sify are establishing significant data center and cable landing station (CLS) projects in the area. These projects are designed to support the increasing demand for high-density AI workloads and enhance India's digital infrastructure.
The Indian government's support for AI development, including the IndiaAI mission with a significant financial outlay, is further fueling the data center boom. This mission aims to expand national AI infrastructure through public-private partnerships, promoting AI research and accelerating the expansion of data center capacity across India.
This partnership is expected to drive a generational shift in India's AI capabilities by adding significant compute capacity. The collaboration will also involve other ecosystem partners, including Airtel. With increasing smartphone subscriptions, rising mobile data traffic, and accelerating digital transactions, India requires massive infrastructure to store, process, and distribute data seamlessly, positioning Adani Enterprises as a key player in developing data centers at scale across the country.
