Core Insights - Alphabet, Google's parent company, plans to invest over $10 billion in a 1 GW data center in Visakhapatnam, Andhra Pradesh, marking a significant bet on the Indian market as part of its global expansion strategy [1] - The Andhra Pradesh government aims to establish a total of 6 GW of data centers by 2029, highlighting the importance of such infrastructure for job creation and economic activity [1][3] Investment and Market Trends - The demand for data centers is surging globally, with India emerging as a major beneficiary; Amazon plans to invest $12.7 billion in cloud infrastructure in the region by 2030, and OpenAI is seeking to establish a 1 GW data center [3] - According to CBRE, India's data center market investment is projected to exceed $100 billion by 2027 [3] Energy Infrastructure and Challenges - Indian Prime Minister Modi emphasizes technology as a key driver for economic revitalization and poverty alleviation, although challenges such as limited water resources and unstable electricity supply persist [3] - The Indian government is enhancing its power generation capacity, with a record addition of 34 million kW in 2024, primarily from renewable sources, which contributed over 85% of the new capacity [3][4] - Andhra Pradesh is actively seeking to improve its electricity supply, including plans for coal power plants, despite facing peak load shortages [3][4] Government Support and Policy - The Andhra Pradesh government is introducing clean energy projects to diversify its energy structure, with ReNew Energy investing $2.5 billion in a 2.8 million kW wind-solar hybrid project [4] - The Telugu Desam Party, led by N. Chandrababu Naidu, is a key supporter of the data center investment plans, leveraging its influence to secure favorable policies for investing companies [4]