Relevance: GS III (Science & Technology – IT & AI) & GS III (Indian Economy – Infrastructure) | Source: The Hindu

1. The News

The foundation stone for a massive new Google AI Data Centre was recently laid on the outskirts of Visakhapatnam (Vizag), Andhra Pradesh.

• The Goal: The government wants to transform Visakhapatnam into “AI-patnam.”
• The Shift: This is a huge milestone for India’s digital administration. It shifts India from just using foreign cloud services to actually hosting our own massive, indigenous AI computing power right here at home.

2. Key Facts of the Project 

An administrator must understand the sheer physical and financial size of this mega-project:

• The Capacity: It is a 1-Gigawatt hyper-scale data centre spread across 600 acres.
• The Investment: It brings a staggering ₹1.35 lakh crore in Foreign Direct Investment (FDI).
• The Team: It is managed by Google (Raiden Infotech) in a strategic partnership with the Adani Group and Airtel.
• Global Connectivity: The facility will host a new subsea (submarine) cable system, giving Vizag direct, high-speed internet links to the rest of the world.

3. Economic Impact

The economic and infrastructural impact of this single facility is monumental:

• Doubling National Capacity: Currently, India’s total data centre capacity is about 1.3 Gigawatts. This single project in Vizag will add another 1 Gigawatt, almost doubling the entire nation’s capacity in one stroke.
• Decentralizing Infrastructure: Historically, India’s internet cables and data centres were heavily concentrated in Mumbai and Chennai. This project successfully decentralizes critical tech infrastructure to the eastern coastline.
• Spillover Growth: A mega data centre acts as a magnet. It will attract hundreds of other companies that make hardware, cooling systems, and servers, creating thousands of highly specialized jobs in data science and cybersecurity.

UPSC Value Box

With reference to India’s digital infrastructure and data policies, consider the following statements:

1. Foreign Direct Investment (FDI) up to 100% is permitted under the automatic route for data processing and IT infrastructure in India.
2. The Digital Personal Data Protection (DPDP) Act, 2023 mandates that all international submarine cable landing stations must be exclusively operated by the Indian Navy.
3. According to the Draft Data Centre Policy, data centres in India have been recommended to be granted “Infrastructure Status” to facilitate easier access to long-term credit.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)