Syllabus:

GS-3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. 

Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights. 

Context: Google's parent company Alphabet will invest $15 billion over five years to set up an Artificial Intelligence (AI) data centre in Andhra Pradesh, making Google’s largest AI infrastructure investment outside the United States. 

Key Highlights of the Project 

• The project will integrate cloud and AI infrastructure with renewable energy systems, ensuring sustainable and efficient operations.
• The new AI hub in Visakhapatnam will be integrated into Google’s global network of AI centres  spanning across 12 countries.
• The project includes an International subsea gateway on India’s east coast with multiple cables landing in Visakhapatnam, connecting directly to Google’s global cable network.
• An expanded fibre-optic network will be laid to support data transmission and interconnectivity.
• The initiative aligns with the Andhra Pradesh government’s target to develop 6 GW of data centre capacity by 2029, complementing India’s broader digital infrastructure roadmap.

Economic and Strategic Benefits

• Act as a Transformative platform: The new AI hub will accelerate the digital economy, creates high-value jobs, and catalyses startup growth.
• Boosting Digital Infrastructure: The international subsea gateway will enhance India’s digital capacity, address growing data demands, and add route diversity to complement existing cable landings in Mumbai and Chennai.
• Strengthening Energy Ecosystem: Google will work with local partners to develop transmission lines, renewable energy units, and storage systems, improving regional energy capacity.
• Driving Employment and Skill Development: The project is expected to create about 1.88 lakh direct and indirect jobs, contributing to Andhra Pradesh’s employment and skill growth.
• Advancing India’s Data and AI Vision: By improving connectivity and data security, the initiative will support India’s goal of becoming a global leader in data and AI innovation.

India’s Growing AI Landscape

• India’s data centre industry has experienced remarkable growth, surpassing the 1 GW capacity milestone in 2024, nearly three times its 2019 level.
• The India AI Mission, launched in March 2024 with a financial outlay of ₹10,371.92 crore, seeks to strengthen the national AI ecosystem over the next five years through research, innovation, and capacity building.
• The government’s “AI for Viksit Bharat” vision, detailed by NITI Aayog, highlights how artificial intelligence can drive India’s aspiration to become a developed nation by 2047, requiring sustained annual GDP growth of approximately 8%.

Broader Significance

• Google’s investment signals global confidence in India’s digital ecosystem and its ability to support next-generation technologies safely and at scale.
• India’s low data costs, rapidly expanding internet user base, and favourable policy environment have made it one of the most promising destinations for investments in cloud computing and AI-driven infrastructure.
• The Visakhapatnam AI hub is expected to further stimulate innovation, attract ancillary tech investments and position India as a central node in global AI development and data processing networks.
• The synergy between AI infrastructure, renewable energy, and digital connectivity will play a pivotal role in advancing India’s goals under Digital India and National AI Mission initiatives.

Sources:
Indian Express
Reuters
BBC