Indian multinational conglomerate Adani Group (IN:ADANIENT) says that it is ready to invest up to $5 billion in Google’s new AI data center project, as demand for data storage and computing power surges across the country. Google, which is owned by tech giant Alphabet (GOOGL), announced in October that it will spend $15 billion over the next five years to build a major artificial intelligence data center in Andhra Pradesh. The move shows just how quickly AI is growing and how much specialized infrastructure it now requires.
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In fact, AI tools require massive computing power, which comes from large data centers that connect thousands of chips. Furthermore, Adani Group CFO Jugeshinder Singh said that Google’s project alone could lead to a $5 billion investment for Adani Connex, a joint venture between Adani Enterprises and EdgeConneX. He added that many other companies are also interested in working with them, especially as data centers grow to gigawatt-scale power capacity, which is far larger than traditional facilities.
It is worth noting that Google expects to spend around $85 billion this year on expanding its global data center network. In India, business leaders such as Gautam Adani and Mukesh Ambani have also announced major plans to build new data center capacity, with the upcoming Google–Adani data center campus in the port city of Visakhapatnam starting with one gigawatt of power.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Google stock based on 31 Buys and seven Holds assigned in the past three months. Furthermore, the average Google price target of $312.00 per share implies that shares are trading near fair value.
