Shares in asset manager Brookfield Corporation (BN) were stronger today after it said it was part of a joint venture set to invest $11 billion into developing AI in India.
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Seamless AI Workloads
Brookfield, India’s Reliance Industries and U.S.-based real estate investment trust Digital Realty (DLR) will invest the sum in the south Indian state of Andhra Pradesh to establish 1GW of artificial intelligence data capacity by 2030. The joint venture even has its own name – Digital Connexion.
The project aims to establish an AI-native data centre campus across 400 acres of land in Andhra Pradesh’s Visakhapatnam city.
“Digital Connexion data centres are purpose-built to support seamless AI workloads empowering hyperscalers and enterprises with future-ready systems, robust substations, redundant power feeds, and rack densities to power the next decade of innovation,” Digital Connexion said in a statement.
BN will hope the move continues its recent expectations-busting revenue performance – see below:
It is not the first major U.S. firm to take an interest in this location.
In October, Alphabet (GOOGL)-owned Google disclosed it will build AI data centre capacity in Visakhapatnam over five years, set to be the tech major’s largest-ever AI hub outside of the U.S.
It is investing $15 billion.
India Has Huge AI Plans
The new hub will be built by Google’s Indian arm, Raiden Infotech, which aims to set up three campuses across Visakhapatnam. The project will add about 1 gigawatt of data capacity to the state’s fast-growing tech network.
Last week, Indian IT firm TCS also unveiled a partnership with private equity firm TPG to invest $2 billion in equity to form a joint venture aimed at developing AI data centres.
India’s data centre capacity is expected to more than triple to 4.5 gigawatt by 2030 from current levels, according to real estate consultant Colliers.
Analysts believe by 2030 AI could be worth $450 to $600 billion per year to the growing Indian economy. This will equate to 10 to 15% of Indian GDP. This will be driven by large corporations and startups across a range of sectors such as financial services, manufacturing, education and agriculture.
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