Latest news with #datacentre
Zawya
2 hours ago
- Business
- Zawya
Google to invest $6bln in southern India data centre, sources say
SINGAPORE: Google will invest $6 billion to develop a 1-gigawatt data centre and its power infrastructure in the southern Indian state of Andhra Pradesh in the Alphabet unit's first such investment in India, government sources said on Wednesday. Due to be built in the port city of Visakhapatnam, the data centre investment includes $2 billion in renewable energy capacity that will be used to power the facility, two Andhra Pradesh government sources with direct knowledge of the matter told Reuters. The search giant's data centre will be the largest in capacity and investment size in Asia and is part a multi-billion-dollar expansion of its data centre portfolio across the region in countries including Singapore, Malaysia and Thailand. In April, Alphabet said it was still committed to spending some $75 billion this year to build data centre capacity despite the economic uncertainty resulting from U.S. President Donald Trump's global tariff offensive. Alphabet did not immediately respond to Reuters' request for comment. Andhra Pradesh's information technology minister Nara Lokesh, who is in Singapore to discuss investments with thegovernment and business leaders there, did not comment on the Google investment. "We've made certain announcements like Sify, which are public," he said, referring to a 550-MW data centre Sify Technologies plans to build in the state. "There are certain announcements which are not yet public. In October, we will make those announcements." STATE'S POST-SPLIT INVESTMENT DRIVE Andhra Pradesh, a state run by a leading ally of India's Prime Minister Narendra Modi, was split into two in 2014, losing its former capital Hyderabad and a major revenue source to the newly created Telangana state. Andhra Pradesh has since been looking to attract investments to ease the financial strains of high debt and social spending. Lokesh said Andhra Pradesh has already been able to finalise investments in data centres with total capacity of 1.6 GW, adding that it aims to build 6 GW of data centres over the next five years from nearly zero currently. He expects the initial 1.6 GW of already agreed data centres to be operational in the next 24 months. That would be more than the 1.4 GW currently in operation in the entire country, according to real estate consultancy Anarock. "We're also working on getting three cable landing stations in Visakhapatnam. We want to create enough of cable network, which will be two times what Mumbai has today," Lokesh said. Cable landing stations - typically located close to data centres requiring fast and reliable connections to global networks - are used to store equipment which receives and relays data from undersea cables. Lokesh also said the state was looking to build up energy infrastructure to meet sustainability requirements of data centres. He said he anticipated power generation capacity requirements of as much as 10 GW from the electricity-intensive industry over the next five years. "Majority will end up being actually green energy, and that's the unique value proposition that we bring to the table," he said. Some of the additional capacity will be coal-fired, however, as data centres require reliable, high volume power throughout the day, he added. (Reporting by Sudarshan Varadhan; Editing by Joe Bavier)
Yahoo
2 hours ago
- Business
- Yahoo
Schneider Electric confirms 2025 outlook as data centres drive growth
(Reuters) -French electrical equipment maker Schneider Electric confirmed its 2025 outlook on Thursday after reporting second-quarter revenue growth, buoyed by continued strong demand for its data centre offering. Revenues were up 8.3% organically to 10.01 billion euros ($11.43 billion). That compared with estimates of 9.99 billion and 7.5% organic growth in a company-compiled consensus. Revenues at its energy management business rose 10% organically. The company confirmed its implied 2025 adjusted earnings before interest, taxes and amortization (EBITA) margin of between around 18.7% and 19%, compared with an estimate of 18.8%. The guidance included the impact of trade tariffs enacted or announced to-date, the company said. The group, which has been benefiting from a shift toward electrification and heavy investment in data centres, said that the overall environment in data center segment continued to be very strong, with sales growing double-digit in the quarter. It added that it saw good traction for its cooling offers, including for liquid cooling at its recently acquired U.S. company Motivair. Schneider noted that demand at its non-residential segment remains strong, but its "relatively smaller" residential buildings segment continued to see a decline in demand. All of its four regions reported growth in the quarter, Schneider said. Revenues in North America, which is its biggest market accounting for 38% of its second-quarter revenue, grew 12.5% organically. The company has more than 20 factories and distribution centers across the U.S., including facilities in Texas, Ohio, Missouri, North Carolina. ($1 = 0.8758 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
2 hours ago
- Business
- BBC News
Bradford data centre 'would bring AI industry to the region'
A data centre planned for the outskirts of Bradford would "allow the region to benefit from new rapidly growing industries such as AI," according to a planning proposal would see the computer facility building developed on Listerhills Road, near the junction with Thornton Road, and next to an energy centre which is under by Deep Green Technologies Ltd, the application said the centre would "serve a range of businesses and universities" across the UK.A decision on the application is expected to be made in October. The data centre would house large amounts of computing equipment and servers, enabling it to be used by multiple businesses which rely on data processing, such as the growing Artificial Intelligence industry, according to the Local Democracy Reporting application said businesses and universities across the north of England could use the vacant site, on one of the main routes into the city centre, is currently undergoing a major energy centre being constructed by 1energy will use air source heat pumps to provide low carbon heating to a number of buildings in the city, including Bradford City Hall and the city's law area that the data centre would be built on is currently used to store materials for the construction of the energy emergency generators are included in the plans to keep the facility running in the event of a power application said any excess heat from the centre would be used to provide energy to the 1energy facility and therefore could help reduce the energy bills of organisations signed up to the District Heat plans said the data centre would "provide critical digital services" to the city and northern England which would "enhance infrastructure and allow the region to benefit from new rapidly growing industries such as AI".It also said it would serve universities across the UK. Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
Globe and Mail
5 hours ago
- Business
- Globe and Mail
Green Power Meets Cloud Scale: How Google (GOOGL) Shapes India's Digital Infrastructure
Google (GOOGL) will invest $6 billion to build a 1‑gigawatt data centre and power infrastructure in Visakhapatnam, Andhra Pradesh, marking Alphabet's first major data‑centre investment in India and the largest by capacity and capital in Asia. The port‑city facility is designed to support hyperscale cloud services and AI workloads with ultra‑low latency, positioning Google to tap into India's rapidly growing digital economy. The project includes a $2 billion commitment to renewable energy capacity dedicated to the new centre, part of Alphabet's broader $75 billion spend on data‑centre expansion this year across Singapore, Malaysia and Thailand. By pairing green power with cutting‑edge infrastructure, Google aims to meet sustainability targets while ensuring reliable operations in a region prone to supply‑chain and regulatory shifts. Market Overview: Hyperscalers accelerate Asia‑Pacific data centre builds for AI and cloud growth Renewable energy tie‑ins become standard to address ESG mandates India emerges as a strategic hub amid diversifying global network footprints Key Points: 1 GW facility backed by $6 billion capex in Visakhapatnam, AP's first major hyperscale site $2 billion allocated for solar and wind generation to power the centre Alphabet maintains $75 billion data‑centre rollout plan despite geopolitical uncertainty Looking Ahead: Execution speed and PPA agreements will set benchmarks for future investments AP's regulatory incentives and grid upgrades critical to sustaining growth Competition from AWS and Microsoft to intensify as India's market matures Bull Case: Google's landmark $6 billion investment in Visakhapatnam will create the largest data-centre facility by capacity and capex in Asia, firmly positioning Alphabet to capture India's explosive cloud and AI workload demand as local enterprises scale digital transformation initiatives. By pairing the 1 GW site with a $2 billion commitment to solar and wind, Google is at the vanguard of ESG-driven infrastructure—offering customers, regulators, and partners a clear sustainability narrative that aligns with growing global and Indian environmental mandates. The strategic choice of Andhra Pradesh gives Google first-mover advantage in a state with strong government incentives, massive grid expansion plans, and a push to become an Asia-Pacific digital super-node. Early anchor status could yield favorable tax, permitting, and network interconnection benefits versus later competitors. Google's commitment to execution (ultra‑high capacity, local renewable PPAs, modern cable-landing stations) sets a best-in-class benchmark, likely attracting subsequent hyperscale deals and nurturing a robust cloud and AI ecosystem in southern India. The facility's scale supports ultra‑low latency for next‑gen services—foundational for both local unicorns and multinational clients—while resilience from renewable-plus-coal backstops ensures mission‑critical reliability amid India's complex power grid dynamics. Alphabet's ability to sustain programmatic growth globally (with $75 billion in data-centre capex committed this year) demonstrates financial power and operational confidence, signaling to investors and customers that it can meet surging AI and cloud requirements at global scale. Bear Case: The scale and ambition of the $6 billion Visakhapatnam investment increase execution risks—permitting, construction, and grid interconnection delays could strain returns, especially if local regulatory processes stall or infrastructure upgrades lag hyperscaler demand. India's immature power market may undermine Google's renewable energy strategy: while $2 billion is earmarked for green power, grid instability or overreliance on coal backstops could threaten ESG goals, introduce reputational risk, or inflate operational costs during spiking energy markets. Competition is set to escalate: AWS and Microsoft are also accelerating data centre buildouts in India—if client ramp is slower than expected, Alphabet could face pricing pressure and underutilization, challenging its ROI and first-mover edge in a nascent regional market. Global geopolitical risks remain nontrivial: Alphabet's $75 billion data-centre rollout faces possible headwinds from shifting trade policy, supply chain bottlenecks, or local content regulation, each of which could hike project costs or limit Google's flexibility over the facility's lifecycle. Reliance on Andhra Pradesh's fiscal and regulatory incentives could backfire if political winds shift or competing states introduce counter-offers—future cost structures may prove less attractive as the 'data centre gold rush' intensifies across India. Heavy capital outlay tied up in a single site increases financial and operational risk; failure to hit timelines or win major offtake deals may leave Google with excess capacity as the pace of AI and cloud demand, while robust, remains inherently difficult to forecast. Andhra Pradesh, carved out from Telangana in 2014, targets 6 GW of total data‑centre capacity within five years, up from virtually zero today. Officials expect the initial 1.6 GW of lined‑up projects to go live over the next two years, supported by plans for three new cable‑landing stations to double regional connectivity. While green energy will supply the bulk of demand, reliable coal‑fired backstops will ensure uninterrupted power. Google's Visakhapatnam bet underscores India's ascent as a global cloud and AI hub and highlights Andhra Pradesh's push to alleviate fiscal strains through infrastructure investment. Investors and hyperscalers will watch permit timelines, grid reliability and off‑take agreements as gauges of the state's data‑centre climate and as a template for future pan‑India deployments.
Yahoo
17 hours ago
- Business
- Yahoo
Google to invest $6 billion in southern India data centre, sources say
By Sudarshan Varadhan SINGAPORE (Reuters) -Google will invest $6 billion to develop a 1-gigawatt data centre and its power infrastructure in the southern Indian state of Andhra Pradesh in the Alphabet unit's first such investment in India, government sources said on Wednesday. Due to be built in the port city of Visakhapatnam, the data centre investment includes $2 billion in renewable energy capacity that will be used to power the facility, two Andhra Pradesh government sources with direct knowledge of the matter told Reuters. The search giant's data centre will be the largest in capacity and investment size in Asia and is part a multi-billion-dollar expansion of its data centre portfolio across the region in countries including Singapore, Malaysia and Thailand. In April, Alphabet said it was still committed to spending some $75 billion this year to build data centre capacity despite the economic uncertainty resulting from U.S. President Donald Trump's global tariff offensive. Alphabet did not immediately respond to Reuters' request for comment. Andhra Pradesh's information technology minister Nara Lokesh, who is in Singapore to discuss investments with thegovernment and business leaders there, did not comment on the Google investment. "We've made certain announcements like Sify, which are public," he said, referring to a 550-MW data centre Sify Technologies plans to build in the state. "There are certain announcements which are not yet public. In October, we will make those announcements." STATE'S POST-SPLIT INVESTMENT DRIVE Andhra Pradesh, a state run by a leading ally of India's Prime Minister Narendra Modi, was split into two in 2014, losing its former capital Hyderabad and a major revenue source to the newly created Telangana state. Andhra Pradesh has since been looking to attract investments to ease the financial strains of high debt and social spending. Lokesh said Andhra Pradesh has already been able to finalise investments in data centres with total capacity of 1.6 GW, adding that it aims to build 6 GW of data centres over the next five years from nearly zero currently. He expects the initial 1.6 GW of already agreed data centres to be operational in the next 24 months. That would be more than the 1.4 GW currently in operation in the entire country, according to real estate consultancy Anarock. "We're also working on getting three cable landing stations in Visakhapatnam. We want to create enough of cable network, which will be two times what Mumbai has today," Lokesh said. Cable landing stations - typically located close to data centres requiring fast and reliable connections to global networks - are used to store equipment which receives and relays data from undersea cables. Lokesh also said the state was looking to build up energy infrastructure to meet sustainability requirements of data centres. He said he anticipated power generation capacity requirements of as much as 10 GW from the electricity-intensive industry over the next five years. "Majority will end up being actually green energy, and that's the unique value proposition that we bring to the table," he said. Some of the additional capacity will be coal-fired, however, as data centres require reliable, high volume power throughout the day, he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
