Google's $10 Billion AI and Data Centre Investment in India

Google’s $10 Billion Investment in India

Google is set to invest $10 billion to develop a massive 1-gigawatt data centre and artificial intelligence (AI) campus in Visakhapatnam (Vizag), Andhra Pradesh, India. This project marks one of the largest foreign direct investments (FDI) in India’s technology and infrastructure sectors and positions Andhra Pradesh as a major hub for data centre capacity, AI development, and digital innovation.

Background and Announcement

The announcement was confirmed in mid-2025, with Google’s parent company Alphabet Inc. committing this substantial capital expenditure to establish a hyperscale data centre campus. The facility will be located in the southern Indian state of Andhra Pradesh, specifically in the coastal city of Visakhapatnam, chosen for its strategic location and infrastructure advantages. The investment is expected to catalyse transformative growth in the region’s technology ecosystem and aligns with India's broader digital infrastructure expansion goals.

Project Scale and Features

• The 1-gigawatt capacity signifies one of the largest data centre installations in India, designed to support not only Google’s cloud services but also its AI research and development efforts.
• The campus will incorporate cutting-edge AI infrastructure, making it a critical hub for Google’s AI-driven services in India and the Asia-Pacific region.
• The investment includes advanced green energy integration to ensure sustainable operations, addressing typical concerns around data centres’ energy and water consumption.

Economic and Social Impact

According to Nara Lokesh, Andhra Pradesh’s Minister for Information Technology, Electronics and Communications, the project is expected to create approximately 188,000 jobs, both direct and indirect, over the coming years. The investment is projected to add around Rs 10,518 crore (approximately $1.3 billion) annually to Andhra Pradesh’s Gross State Domestic Product (GSDP) during the 2028–2032 period.

The government of Andhra Pradesh has coordinated closely with the Indian central government to ensure tax clarity and incentives, removing retrospective taxation risks for data centres and creating a favorable policy environment to attract such large-scale investments.

Strategic Importance for Andhra Pradesh

The project is a cornerstone for Andhra Pradesh’s ambitions to develop a 6-gigawatt data centre hosting capacity within three years, leveraging Google’s investment as a flagship initiative. This vision aims to position Andhra Pradesh as a global technology and AI hub, emulating the success of Hyderabad’s IT ecosystem but at a faster pace and larger scale. The state is also negotiating with other global technology companies to expand its data centre footprint.

Minister Nara Lokesh emphasized embracing AI as an irreversible and critical technology for economic growth:
"AI is here to stay. Either you embrace it or you get replaced by it. We as a state have decided to embrace it." His statement underscores the government’s proactive approach to integrating AI and digital infrastructure in its development strategy.

Sustainability and Infrastructure

While data centres are often criticized for high energy and water usage, Andhra Pradesh plans to manage these demands systematically. The state government is investing in infrastructure upgrades and ensuring best-in-class incentives and policies to support sustainable growth. This includes energy sourcing from renewables and efficient resource management to mitigate environmental impact.

Broader Implications for India

Google’s $10 billion data centre project is the largest FDI in India’s technology infrastructure to date. It signifies growing confidence in India's potential as a global digital economy player and reflects the country’s increasing importance as a hub for cloud computing and AI development. The project also aligns with India’s digital transformation initiatives under the Digital India program and the country's ambition to become a major AI innovation center.

Visuals to Accompany the Article

• Google’s official logo and branding related to cloud and AI services.
• Images of Visakhapatnam’s development zones or proposed site for the data centre.
• Photos or graphics illustrating large-scale data centres and AI infrastructure.
• Pictures of Andhra Pradesh IT Minister Nara Lokesh at the site or during announcement events.
• Infographics showing the expected economic impact and job creation numbers.

This $10 billion investment by Google not only accelerates Andhra Pradesh’s rise as a critical technology hub but also exemplifies the global tech industry's commitment to India’s growing AI and digital economy landscape. With robust government support, focused infrastructure development, and clear policy frameworks, the project is poised to redefine the state’s economic trajectory and India’s place in the global technology ecosystem.