India Plans Big AI Data Center in Visakhapatnam

Andhra Pradesh is planning a large "data city" in Visakhapatnam to become a leader in AI technology. The project includes building big data centers and aims to attract global investment. It also focuses on better internet connections for the region.
By Newsroom | Technology, India |

Andhra Pradesh is setting itself up as a major center for artificial intelligence (AI) technology, with plans for a large "data city" in Visakhapatnam. This ambitious project aims to attract global investment and boost India's standing in the AI field. The state is focused on building significant data center capacity, with plans for undersea internet cables to further connect the region.

A New Digital Frontier in Visakhapatnam

The state of Andhra Pradesh is pursuing a large-scale digital initiative centered around Visakhapatnam, a port city on India's east coast. The plan involves creating a connected data ecosystem within a 100-kilometer radius of the city. This move signals a significant bet on AI and aims to draw substantial investment into the region. The project goes beyond just physical infrastructure, intending to foster a comprehensive AI-driven innovation hub.

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India plans AI Data City on Staggering Scale in AP: Nokesh - 1

  • Goal: To become a national leader in AI innovation and attract global investment.

  • Location: Visakhapatnam, Andhra Pradesh.

  • Scope: A 100km radius data ecosystem, including massive data centers.

Significant Data Center Capacity Planned

A core part of this initiative is the development of extensive data center capacity. Andhra Pradesh aims for six gigawatts (GW) of data center capacity.

  • Current Status: Three GW are already signed, with another three GW in the pipeline.

  • Ambition: This scale is intended to provide a competitive advantage.

Key Partnerships and Investments

The development involves major partnerships, notably with Google.

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  • Google's Role: Google's subsidiary, Raiden Infotech India, is involved in setting up a network of hyperscale data centers.

  • Anchor Facility: A gigawatt-scale data center is planned for Visakhapatnam, touted as one of the largest in India and ambitious globally.

  • Agreement: A formal partnership between the Government of Andhra Pradesh and Google was established to build a 1-gigawatt hyperscale data center.

  • Investment: This project represents a phased investment exceeding Rs 87,500 crore (approximately $10 billion).

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Key figures present at the agreement signing included:

  • Andhra Pradesh Chief Minister N Chandrababu Naidu.

  • IT Minister Nara Lokesh.

  • Thomas Kurian, CEO of Google Cloud.

  • Bikash Koley, Vice-President of Global Infrastructure, Google.

  • Karan Bajwa, President, Asia Pacific Google Cloud.

Infrastructure and Connectivity Focus

The data city plan emphasizes robust infrastructure, including energy and connectivity.

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  • Energy Demand: Data centers are known to consume significant amounts of power and water.

  • Cable Landing Station: Visakhapatnam is being positioned as a landing point for submarine internet cables that will connect India to Singapore, enhancing digital connectivity. Google is also set to host its cable landing station in the city.

  • Fiber-Optic Network: The AI hub will feature an extensive fiber-optic network.

Questions and Criticisms

Despite the ambitious plans, there are points of discussion and critique.

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  • Employment Concerns: Some observers question whether data centers will generate substantial, long-term employment once construction is complete.

  • India's AI Standing: Critics point out that India currently lags in access to high-end computing power and commercial AI deployment. India is seen more as a consumer than a creator of cutting-edge AI technology.

  • Resource Consumption: The high power and water needs of data centers are also noted as a factor.

Minister Nara Lokesh has reportedly rejected concerns about job creation.

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Broader Context: India's AI Push

This initiative aligns with a broader push by India to advance its capabilities in artificial intelligence.

  • AI Impact Summit: The plan coincides with India's hosting of the AI Impact Summit.

  • Policy Support: Andhra Pradesh has implemented a newly approved policy offering incentives, land, and phased capacity to support digital infrastructure development. This has already attracted over 1.6 GW in approvals.

Conclusion

The planned AI data city in Visakhapatnam represents a significant strategic move by Andhra Pradesh and India to establish a strong presence in the global AI landscape. With substantial investment, key international partnerships, and a focus on building massive data center capacity and advanced connectivity, the project aims to transform the region into a digital innovation hub. However, questions surrounding employment generation and India's current position in the AI technology race remain points of discussion as this large-scale endeavor unfolds.

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Frequently Asked Questions

Q: What is being built in Visakhapatnam?
India is planning a large "data city" focused on artificial intelligence (AI) technology. It will include big data centers.
Q: Who is helping with this project?
Google is a key partner in this plan. They will help build large data centers in the area.
Q: How much money is being invested?
The project plans to invest over $10 billion in stages.
Q: What are the goals of this plan?
The main goals are to make India a leader in AI and attract money from companies around the world.
Q: Are there any worries about this plan?
Some people wonder if data centers will create many jobs for a long time. There are also questions about India's current AI abilities and the use of power and water.