Google Reportedly Weighs Large Data Center in Vietnam

FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
TT
20

Google Reportedly Weighs Large Data Center in Vietnam

FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
FILE PHOTO: The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo

Alphabet's Google is considering building a large data center in Vietnam, a person briefed on the plans said, in what would be the first such investment by a big US technology company in the Southeast Asian nation.
Google is weighing setting up a "hyperscale" data center close to Ho Chi Minh City, Vietnam's southern economic hub, the source said, declining to be named because the information is not public.
The investment, the size of which the source did not specify, would be a shot in the arm for Vietnam which has so far failed to attract major overseas capital in data centers due to its patchy infrastructure, with large tech companies preferring to house their centers in rival nations in the region.
According to Reuters, it was not clear how quickly Google will reach a decision on an investment but the source said internal talks are on and the data center could be ready in 2027.
A spokesperson for Google declined to comment about the data center plan.
Hyperscale centers are the largest in the industry, with power consumption usually similar to that of a big city.
A hyperscale data center with power consumption capacity of 50 megawatts (MW) could cost between $300 million and $650 million, according to estimates based on data published by real estate consultant Jones Lang LaSalle in a report this year on data centers in Vietnam.
Google's move was motivated by the large number of its domestic and foreign cloud services clients in Vietnam and the country's expanding digital economy, the source said, noting the Southeast Asian nation was one of the fastest-growing markets for YouTube, Google's popular online video sharing platform.
Currently the top data center operators in Vietnam, based on computing space, are industrial investment firm IDC Becamex and telecommunications company VNPT, both Vietnamese state-owned enterprises, according to an internal market report by an industrial park in Vietnam seen by Reuters.
The Nikkei reported in May that Chinese e-commerce company Alibaba was considering building a data center in Vietnam. Alibaba did not reply to a request for comment.



Perplexity AI Offers Google $34.5 Bn for Chrome Browser 

A logo is pictured at Google's European Engineering Center in Zurich, Switzerland July 19, 2018. (Reuters)
A logo is pictured at Google's European Engineering Center in Zurich, Switzerland July 19, 2018. (Reuters)
TT
20

Perplexity AI Offers Google $34.5 Bn for Chrome Browser 

A logo is pictured at Google's European Engineering Center in Zurich, Switzerland July 19, 2018. (Reuters)
A logo is pictured at Google's European Engineering Center in Zurich, Switzerland July 19, 2018. (Reuters)

Perplexity AI offered Google on Tuesday $34.5 billion for its popular Chrome web browser, which the internet giant could potentially be forced to sell as part of antitrust proceedings.

The whopping sum proposed in a letter of intent by Perplexity is nearly double the value of the startup, which was reportedly $18 billion in a recent funding round.

"This proposal is designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection," Perplexity chief executive Aravind Srinivas said in the letter, a copy of which was seen by AFP.

Google is awaiting US District Court Judge Amit Mehta's ruling on what "remedies" to impose, following a landmark decision last year that said the tech titan maintained an illegal monopoly in online search.

US government attorneys have called for Google to divest itself of the Chrome browser, contending that artificial intelligence is poised to ramp up the tech giant's dominance as the go-to window into the internet.

Google has urged Mehta to reject the divestment, and his decision is expected by the end of the month.

Google did not immediately respond to a request for comment.

Perplexity's offer vastly undervalues Chrome and "should not be taken seriously," Baird Equity Research analysts said in a note to investors.

Given that Perplexity already has a browser that competes with Chrome, the San Francisco-based startup could be trying to spark others to bid or "influence the pending decision" in the antitrust case, Baird analysts theorized.

"Either way, we believe Perplexity would view an independent Chrome -- or one no longer affiliated with Google -- as an advantage as it attempts to take browser share," Baird analysts told investors.

Google contends that the United States has gone way beyond the scope of the suit by recommending a spinoff of Chrome, and holding open the option to force a sale of its Android mobile operating system.

"Forcing the sale of Chrome or banning default agreements wouldn't foster competition," said Cato Institute senior fellow in technology policy Jennifer Huddleston.

"It would hobble innovation, hurt smaller players, and leave users with worse products."

Google attorney John Schmidtlein noted in court that more than 80 percent of Chrome users are outside the United States, meaning divestiture would have global ramifications.

"Any divested Chrome would be a shadow of the current Chrome," he contended.

"And once we are in that world, I don't see how you can say anybody is better off."

The potential of Chrome being weakened or spun off comes as rivals such as Microsoft, ChatGPT and Perplexity put generative artificial intelligence (AI) to work fetching information from the internet in response to user queries.

Google is among the tech companies investing heavily to be a leader in AI, and is weaving the technology into search and other online offerings.