An executive announced that the Adani Group intends to allocate a significant sum of up to $5 billion towards the India AI data center project owned by Google's parent company, Alphabet. This decision is driven by the group's pursuit of opportunities stemming from the rising need for data storage capacity in India, the world's most populous nation.

Google announced in October its commitment to investing $15 billion over the course of five years to establish an artificial intelligence data center in Andhra Pradesh, a significant financial venture marking the company's largest investment in India.

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Artificial intelligence necessitates a substantial amount of computational power, leading to an increased need for specialized data centers capable of interconnecting thousands of chips in clusters.

Jugeshinder Singh, the Chief Financial Officer of Adani Group, stated that the Google project has the potential to result in an investment of approximately $5 billion for Adani Connex.

Adani Connex is a collaboration between Adani Enterprises and the private data center operator EdgeConneX.

Google has pledged to allocate approximately $85 billion for expanding data center capacity this year as technology companies make substantial investments in infrastructure to satisfy the increasing need for AI services.

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Indian tycoons Gautam Adani and Mukesh Ambani have recently disclosed their plans to invest in expanding data center infrastructure. The data center campus located in the coastal city of Visakhapatnam is set to have an initial power capacity of 1 gigawatt.

Furthermore, the Adani group, an important participant in India's development, is currently investigating potential ways to become involved in India's nuclear energy industry, as stated by the conglomerate's CFO, Jugeshinder Singh. Singh verified the Adani Group's strong interest in this area, but emphasized that their involvement would depend on the establishment of a suitable government framework.

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Additionally, Singh emphasized the importance of finalizing important liability laws to help the Group carry out projects more efficiently. He pointed out that by looking at global collaborations, the Adani Group could take on projects like the nuclear reactor project.

Jugeshinder's comment is in response to Prime Minister Narendra Modi's recent announcement about the government's intention to allow private participation in India's tightly regulated nuclear power sector. Adani Group sees this move as a step in the right direction, as it could lead to the liberalization of a sector that is important for helping India achieve its carbon net-zero goal.