Indian Economy News

Google expands AI infrastructure in India with local hosting of Gemini models

Google Cloud has announced the deployment of its latest Gemini artificial intelligence (AI) models on infrastructure located within India, enabling enterprises to process both data and AI workloads entirely within the country. The move marks a significant step in strengthening India's digital infrastructure and positions the country as a strategic hub for AI innovation. Until now, Indian organisations could access Gemini through Google Cloud while AI processing could take place outside India depending on the deployment. With local hosting of Gemini Flash and Gemini Enterprise, sectors such as banking, healthcare, telecommunications and government will be able to retain both data and AI inference within national borders, supporting digital sovereignty, regulatory compliance and lower latency. Google Cloud also reaffirmed its commitment to expanding in-country AI capabilities through investments in local infrastructure, reflecting India's growing importance as its largest cloud market in Asia.

The company is also strengthening India's role in the global AI ecosystem by expanding data centre infrastructure, establishing India as a hub for forward-deployed AI engineering and exploring opportunities for AI server system assembly with domestic partners. These initiatives are expected to accelerate enterprise AI adoption while supporting the development of local technology capabilities and high-value employment. Google's planned Rs. 1,42,815 crore (US$ 15 billion) investment in India's data centre infrastructure is expected to strengthen cloud capacity and enable the country to serve customers across Asia and other global markets. The deployment of advanced AI models on Indian infrastructure provides enterprises with greater confidence in meeting data residency requirements while accessing cutting-edge AI technologies. The initiative is expected to reinforce India's position as a preferred destination for AI innovation, digital transformation and advanced technology investments, further supporting the country's ambitions to become a global digital economy leader.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.