Washington, December 27 (IANS). America’s leading technology companies are investing billions of dollars in India. The reason for this is the country’s emergence as an important global hub for data center and Artificial Intelligence (AI) infrastructure. This information was given in an American media report on Saturday.
The New York Times said that this investment is being led by companies like Microsoft, Amazon, Google and Meta.
Microsoft has pledged to invest $17.5 billion for artificial intelligence projects in India, while Amazon has announced to invest $35 billion in AI-based initiatives across the country over the next five years, the report said.
Google has committed to invest $15 billion for data centers through partnerships with Indian companies Adani Group and Bharti Airtel. Meta is also building a large facility near Google’s planned locations, with other Indian industrial groups also investing through a number of projects.
The report said that if all these investments are combined, American companies have promised to invest about $ 67.5 billion in India’s tech sector. This is the largest investment ever seen in a single sector in the country.
“This is going to be one of the largest single-sector investments ever made in India,” Somnath Mukherjee, chief investment officer of ASK Wealth Advisors in Mumbai, was quoted as saying by The New York Times.
Companies are betting on India’s fast-growing digital economy and large user base. The country holds about 20 percent of the world’s data, but only a small share of the global storage capacity.
“India is the largest consumer of data in the world, but it has barely five percent of the US’s data capacity,” Mukherjee said.
The increase comes despite rising trade tensions between Washington and New Delhi, including higher tariffs imposed by the US earlier this year, the report said.
According to the report, the Indian government, which wants to avoid dependence on foreign servers, has also considered rules for storing data locally. Since 2018, authorities have considered laws mandating digital services to be based on servers inside the country, and banks and messaging platforms are already subject to such requirements.
–IANS
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