Alphabet Inc. (GOOGL) is making a serious bet on India's AI future, and billionaire Gautam Adani wants in on the action. The Adani Group is hammering out the final details on an investment of up to $5 billion in Google's upcoming artificial intelligence infrastructure hub in southern India, according to Chief Financial Officer Jugeshinder Singh.
This isn't just another data center. Google is planning to pump $15 billion into building its largest AI facility outside American soil in Visakhapatnam, a coastal city in southern India. The campus will kick off with 1 gigawatt of power capacity, which is a staggering amount of electricity dedicated to training and running AI models.
Google Cloud CEO Thomas Kurian framed the initiative as more than just business, calling it a demonstration of shared U.S.-India commitment to responsible AI development. The project involves partnerships with Adani's AdaniConneX and Bharti Airtel to build out the supporting infrastructure needed for such a massive operation.
Adani himself described it as a "monumental day for India," emphasizing the campus's AI-specific compute design. Google, meanwhile, highlighted the economic benefits flowing to both countries from the investment.
The timing is interesting. President Donald Trump recently indicated that the U.S. is close to finalizing a new trade deal with India, one he says will increase American energy exports, strengthen defense ties, and drive investment. Part of that equation involves India pulling back from Russian oil purchases as U.S. sanctions tighten.
And the signs are already showing. Mukesh Ambani's Reliance Industries agreed to halt Russian crude imports for its massive Jamnagar export refinery starting December 1, despite having signed a 10-year supply deal just last year. The move is widely seen as easing tensions between Washington and New Delhi as sanctions on Russian oil take full effect. Reliance is now shifting to non-Russian sources for its exports, removing a major sticking point in ongoing trade negotiations.
Visakhapatnam is becoming a data center boomtown. Reliance's Digital Connexion recently committed $11 billion to facilities in the area, while Tata Consultancy Services locked down $1 billion from TPG to accelerate its own expansion plans.
According to estimates from CBRE Group Inc, investments in India's data center market will blow past $100 billion by 2027. That's a lot of servers, a lot of power, and a lot of opportunity for companies positioned to supply the infrastructure.
Price Action: GOOGL stock was trading lower by 0.65% to $317.91 at last check on Friday.
