In biggest India investment, Google to invest $15 bn in AI data centre in Andhra Pradesh — the details, what this means

The data centre will come up in the port city of Visakhapatnam and will be a part of Google’s global network of AI centres spread across 12 countries. “It’s the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States,” Thomas Kurien, the CEO of Google Cloud, said Tuesday in an event attended by Finance Minister Nirmala Sitharaman and IT Minister Ashwini Vaishnaw, among others.

In a post on X, Sundar Pichai, CEO of Alphabet (Google’s parent company), said he discussed the project with Prime Minister Narendra Modi. “Great to speak with India PM @narendramodi @OfficialINDIAai to share our plans for the first-ever Google AI hub in Visakhapatnam, a landmark development.

“This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure. Through it we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country,” Pichai wrote.

Responding to Pichai’s post, PM Modi said, “This multi-faceted investment that includes gigawatt-scale data center infrastructure, aligns with our vision to build a Viksit Bharat. It will be a powerful force in democratising technology. It will also ensure AI for All, delivering cutting-edge tools to our citizens, boosting our digital economy and securing India’s place as a global technology leader”.

In a blog post, Google said the data centre will create “substantial economic and societal opportunities for both India and the United States”.

“According to an analysis conducted by Access Partnership and commissioned by Google, the AI hub is expected to generate at least $15 billion over five years (2026-2030) in American gross domestic product (GDP) because of new economic activity from increased cloud and AI adoption, as well as the American talent and resources involved in developing and operating the AI hub. This initiative creates substantial economic and societal opportunities for both India and the United States — while pioneering a generational shift in AI capability,” the blog post said.

Thanking Google for the $15 billion investment, IT Minister Ashwini Vaishnaw said the digital infrastructure will go a long way in meeting the goals of the India AI mission. “I would also like to thank the Prime Minister for giving us this vision of using technology in every walk of life. I would like the industry to help reskill and upskill our IT professionals in a major way, and thank Google for making this a major part of their agenda. AI services are emerging as a totally new category in our digital economy, and we look forward to this new facility being used for developing our youth for AI services,” he said.

Being developed with AdaniConneX and Airtel, the AI hub will be built with the same infrastructure that powers Google products like Search, Workspace, and YouTube. AdaniConneX is a joint venture between Adani Enterprises and EdgeConneX, set up to develop and operate data centres throughout India.

Google’s AI hub investment includes construction of a new international subsea gateway, including multiple international subsea cables to land in Visakhapatnam on India’s eastern coast — connecting to Google’s more than two million miles of existing terrestrial and subsea cables.

The gateway will help the country meet surging digital demands and provide route diversity to complement existing subsea cable landings in the Mumbai and Chennai areas.

Google will work with local partners to deliver new transmission lines, clean energy generation, and energy storage systems in Andhra Pradesh.

Andhra Pradesh Chief Minister N Chandrababu Naidu, an NDA ally in the Centre and the state, said the data centre will directly or indirectly create 1.88 lakh jobs. “This marks a new era for Andhra Pradesh, and for India itself too. We are proud to be at the forefront of shaping the country’s AI future by hosting India’s first gigawatt-scale data centre and Google’s first AI hub in India. With this partnership, we are laying the groundwork for a generation of innovators and leaders who will carry India’s technological legacy forward,” Naidu said.

Recent large investments into Andhra Pradesh include ArcelorMittal, Bharat Forge, and BPCL across data centres, technology, energy, and tourism, reinforcing the state’s execution track record, IT and HRD Minister N Lokesh Naidu said.

Lokesh said that he envisions the hub as a transformative platform that accelerates the state’s digital economy, creates high-value jobs, and catalyses startup growth. The initiative is designed to attract domestic and international investors, strengthen partnerships with global technology leaders, and establish Andhra Pradesh as a model for responsible and inclusive AI development, he said.