Adani seeks up to $5 billion investment in Google India AI campus

Adani Group executives said they were seeking to invest up to $5 billion in Google’s planned AI data centre campus in Visakhapatnam, Andhra Pradesh, a potential boost to a project Google previously committed $15 billion to develop. The participation would be routed through Adani Connex, the joint venture between Adani Enterprises and EdgeConneX, the executives said in comments reported by Reuters and other outlets on November 29.

The Visakhapatnam campus is intended to support large scale artificial intelligence workloads and was announced with an initial power capacity around 1 gigawatt. Adani’s finance chief indicated that other partners have begun expressing interest as the site scales to gigawatt level capacity, reflecting booming demand for the specialized computing and power infrastructure that an AI era requires.

If completed, an Adani investment of the size proposed would mark one of the largest private contributions to a hyperscale cloud campus in India. The plan would deepen ties between a major Indian conglomerate with extensive ports, energy and logistics assets and a global technology leader that has been expanding physical presence in India to serve rising local and regional demand for cloud and AI services.

The economic implications are multifaceted. For the Adani Group, the move would represent a strategic pivot deeper into digital infrastructure, complementing its existing businesses in power generation and transmission where it could provide associated energy solutions. For Google, having a domestic industrial partner with experience in large infrastructure projects could lower construction and operational risks, and may accelerate the phased build out if regulatory and land clearances proceed smoothly.

The project also underscores a broader policy challenge for India. Large scale AI data centres concentrate intense power demand in single locations, heightening the importance of coordination with state electricity utilities, grid reinforcements and dispatchable clean energy supply. Andhra Pradesh has actively courted data centre investment by offering land and connectivity, but the acceleration to gigawatt level capacity will require clear mechanisms for renewable energy procurement, grid stability planning and possibly new transmission corridors.

Long term, the Visakhapatnam campus would be a bellwether for how India captures value from the AI wave. Partnerships between global cloud providers and local conglomerates can speed up deployment, but they also raise questions about supply chain localization, skilled labour needs and how tax and investment incentives are structured to maximize local economic spillovers. The reported interest from additional partners suggests that the initial campus could morph into a regional AI hub with follow on investment in networking, chip fabrication support services and specialised cooling and power systems.

Next steps for the project include finalizing investment agreements, securing requisite state and central approvals, and locking in long term power arrangements. With Google’s prior $15 billion commitment and the newly reported Adani interest, the Visakhapatnam site has the potential to become one of India’s largest industrial investments tied directly to artificial intelligence infrastructure.