Adani Group Eyes Up to $5 Billion Stake in Google’s India AI Data Centre Push

Adani
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The Adani Group is positioning itself at the centre of India’s rapidly escalating artificial intelligence (AI) infrastructure boom. The conglomerate is exploring an investment of up to $5 billion in Google’s planned AI data centre in Andhra Pradesh, aiming to leverage the explosive demand for data capacity in the world’s most populous nation.

The development reflects the accelerating race among global tech giants and Indian conglomerates to build large-scale, high-power data centres capable of supporting the compute-intensive requirements of AI applications.

Google’s Mega AI Bet in India: $15 Billion Over Five Years

In October, Google announced a landmark decision to invest $15 billion over five years to set up an advanced AI data centre in Andhra Pradesh. This is Google’s biggest investment in India, and a strategic move to scale its AI capabilities and infrastructure footprint.

The centrepiece of this project is a massive data centre campus in Visakhapatnam, designed with an initial power capacity of 1 gigawatt, a scale that reflects the energy-hungry demands of AI computing.

AI models require massive processing power, often relying on thousands of interconnected chips running in parallel. This has made data centres the backbone of global AI development—and India is rapidly emerging as a competitive hub for such infrastructure expansion.

Adani Connex May Invest Up to $5 Billion

According to Adani Group CFO Jugeshinder Singh, the Google AI data centre project could translate into an investment of up to $5 billion for Adani Connex, a joint venture between Adani Enterprises and EdgeConneX, a global private data centre operator.

Speaking to reporters, Singh said:

“It’s not just Google, there are a lot of parties that would like to work with us, especially when the data centre capacity goes to gigawatt and higher.”

This statement signals the Adani Group’s ambition to tap into the massive AI-led data centre wave—which is driving global capital flows, large-scale infrastructure development, and long-term digital capacity building.

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Google’s $85 Billion Global Data Centre Commitment

Beyond the India project, Google has committed to spending about $85 billion this year to expand its global data centre capacity. The surge in investment comes amid intense competition among tech companies to secure the infrastructure needed to support booming AI usage.

From cloud APIs and enterprise AI services to generative AI products, companies across the tech spectrum require ultra-high-performance data centres. Google’s unprecedented $85 billion annual outlay is part of a global race to meet AI-driven computing needs, making India a strategic location for expansion.

Why Data Centre Capacity Matters in the AI Era?

AI workloads differ fundamentally from traditional computing tasks. Large AI training models require:

  • High-density clusters of GPUs or advanced chips

  • Heavy cooling capabilities

  • Massive energy infrastructure

  • Low-latency connectivity

As a result, data centres designed for AI must operate at substantially higher capacity than conventional setups.

Adani Connex, with its large-scale infrastructure expertise and partnership with EdgeConneX, aims to build out this next-generation data centre capability in India. The Google project, with its initial 1-gigawatt capacity, represents a significant leap towards establishing India as a key AI infrastructure hub.

Adani vs. Ambani: India’s Billionaires Join the AI Infrastructure Race

The article also notes that India’s billionaire industrialists Gautam Adani and Mukesh Ambani have already announced major investments in building data centre capacity. Both business groups are positioning themselves to benefit from India’s long-term digital transformation—powered by AI, cloud computing, and high-performance data requirements.

Adani Connex, backed by Adani Enterprises and EdgeConneX, is among the major players in India’s data centre landscape. With Google as a potential multi-billion-dollar partner, its role is set to expand significantly.

A Strategic Partnership With Massive Upside

If finalised, the partnership between Google and Adani Connex could offer mutual advantages:

For Google:

  • Rapid entry into India’s AI infrastructure ecosystem

  • A reliable partner with power, land, and digital infra expertise

  • Faster scaling of AI computing capabilities in a high-growth market

For Adani:

  • Multi-billion-dollar investment flow

  • Long-term recurring revenue from data centre operations

  • A stronger foothold in the global AI infrastructure ecosystem

  • Higher demand from other hyperscalers seeking similar partnerships

Singh’s remarks also suggest that the Google deal may not be isolated—other major players are already showing interest as India’s capacity moves into the “gigawatt-and-above” category.

What does the Project mean for India?

India’s digital economy is expanding at unprecedented speed. With its population leading global internet usage and businesses increasingly adopting AI-driven technologies, the demand for high-performance data centres is accelerating sharply.

Google’s $15 billion India investment—paired with Adani Connex’s potential $5 billion stake—signals confidence in India’s role as a future AI infrastructure powerhouse.

The location of the project, Visakhapatnam, also positions the city as a growing digital hub, drawing large tech and industrial investments.

The Road Ahead

The Adani Group’s pursuit of a multi-billion-dollar stake in Google’s project points to a clear trend: India is entering the next phase of its digital revolution—powered by AI-driven infrastructure.

With Google’s massive global and India-specific investments, combined with the interest of major Indian conglomerates, the coming years will see India transform into one of the world’s most important hotspots for AI infrastructure development.

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I am Jitesh Kanwariya is a professional stock market analyst and F&O trader with expertise in derivatives and market research. A Python developer by profession, he leverages data-driven insights to analyse market trends and simplify trading for investors.
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