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Why are Big Tech's AI data centres crucial for India?
Mint New Delhi
|October 16, 2025
After Microsoft and Amazon, Google has now announced plans to invest $15 billion in setting up its artificial intelligence (AI) data centre infrastructure in Andhra Pradesh's port city of Visakhapatnam. Mint explains what this means for India's broader technology and employment ecosystem.
1 Why does AI need dedicated data centres?
AI is by far the biggest data user, primarily because it consumes and processes vast amounts of information to produce results. Companies require massive, at-scale data centre infrastructure to train AI models, the largest of which are based on multiple trillions of data parameters. Even more challenging is making these models available without limitations and latencies to users worldwide. The availability of these facilities closer to users makes it easier for applications to load and run. Localizing a data centre also means it is less prone to global geopolitical sanctions and disruptions. With rising reliance on AI for businesses and public services, AI data centres are likely to emerge as critical infrastructure in India.
2 Whose needs would most such facilities serve?
This story is from the October 16, 2025 edition of Mint New Delhi.
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