Massive outlay for AI-ready infrastructure: Mumbai-based Digital Connexion, a joint venture between Brookfield Asset Management, Reliance Industries, and US-based Digital Realty, said it will invest approximately INR 980 bn (USD 11 bn) by 2030 to build 1 GW of AI-native data centers in the southern state of Andhra Pradesh, as per a press release. Digital Connexion has inked an MoU with the Andhra Pradesh Economic Development Board towards this end.

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Purpose: The digital infrastructure company has a goal to support hyperscale and enterprise AI workloads with high rack density, robust substations, redundant power feeds, and carrier-neutral connectivity.

Expansion context: The project follows a separate USD 15 bn commitment by Google last month for an AI hub in the same region, signaling a broader expansion of Andhra Pradesh’s digital infrastructure. Digital Connexion has already established a campus in Chennai and begun building another in Mumbai’s Chandivali area, underscoring its ambition to meet demand for low-latency AI workloads across India.

India is in the midst of a large data center investment cycle. Tata Consultancy Services announced last week a USD 2 bn investment with TPG, while Adani Group is developing data centers in Andhra Pradesh through a USD 15 bn partnership with Google. Reliance Industries has also teamed up with Meta and Google to build 1 GW of capacity nationwide.

Sector revenues are set to rise alongside this buildout — data center operators will generate around USD 2.4 bn annually by FY 28, growing 20-22% a year, as per Crisil data.

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