Google to Build $15B AI Data Center in India’s Visakhapatnam

Google plans to invest $15 billion to set up a major AI and cloud data center in Visakhapatnam, in what will be the company’s largest project in India so far. The site will form the backbone of Google’s expanding digital infrastructure across South Asia.

The project, expected to roll out over the next five years, will include renewable power sources, high-speed fiber connectivity, and a local partnership with AdaniConneX and Bharti Airtel. The companies will jointly build and manage the facility, which aims to support India’s growing demand for cloud and AI computing.

Andhra Pradesh technology minister Nara Lokesh said the new center is part of a state plan to develop 6 gigawatts of data capacity by 2029. He added that Google’s investment would help attract more technology firms to the region and create long-term digital infrastructure.

“This is not just another investment,” Lokesh said. “It’s a foundation for a new tech economy that connects Andhra Pradesh with global AI innovation.”

Google’s Largest AI Infrastructure Bet in India

Google’s Visakhapatnam facility will be the centerpiece of its new AI and cloud expansion across South Asia — marking a shift from smaller regional data hubs to large-scale infrastructure within India itself.

Industry experts say the move highlights how the company is anchoring more of its global computing power closer to India’s fast-growing digital economy, as demand for cloud and AI services surges among local startups, enterprises, and government agencies.

Officials estimate that more than $10 billion of Google’s total planned investment will go directly into the Visakhapatnam data center. The rest will fund renewable energy projects and fiber networks needed to power and connect the site.

U.S. Tech Firms Increase Cloud Investments in India

Google’s Visakhapatnam project comes alongside other large U.S. technology investments in India. Amazon Web Services has committed $12.7 billion to expand cloud infrastructure by 2030. OpenAI is planning a 1-gigawatt data center to support AI model training.

According to CBRE Group, India’s data-center market could surpass $100 billion in total investment by 2027, driven by growing demand for AI services, 5G networks, and government-backed digital infrastructure.

“These facilities are being built to handle AI and cloud workloads at scale, not only for local operations but for global clients,” said a senior data-center executive familiar with the projects.

State Support for Data Center Expansion

The Andhra Pradesh government is offering land and electricity incentives to attract large-scale technology investments. Chief Minister N. Chandrababu Naidu, who helped develop Hyderabad’s tech sector in the late 1990s, is applying a similar approach to Visakhapatnam.

Officials say the state aims to simplify permitting and regulatory approvals for major technology projects.

“Reliable power and water supply are essential for these data centers,” said an industry consultant. “Addressing these infrastructure challenges will determine the success of new investments.”

Google Cloud to Provide AI Capacity for Indian Users

Google Cloud CEO Thomas Kurian said the Visakhapatnam hub will supply AI and cloud computing resources to startups, research centers, and enterprises in India.

This infrastructure will let developers and businesses build, train, and run AI systems at scale,” Kurian said in New Delhi.

The data center is designed to reduce latency, enhance data security, and comply with India’s data localization requirements

Also Read: Tesla Registers “Model Y+” in China, Plans Longer-Range Electric SUV