Google will invest in a major data centre and artificial intelligence hub in Andhra Pradesh, marking one of the largest technology commitments in the state’s history.
The project, announced through a memorandum of understanding between the state government and Alphabet Inc., will see the establishment of a 1-gigawatt (GW) data-centre campus in Visakhapatnam.
The facility is expected to anchor large-scale AI computing infrastructure powered by renewable energy.
The initiative forms the core of a larger plan to develop Visakhapatnam as an “AI city.” The blueprint includes expanded fibre-optic networks, upgraded power transmission systems, and new subsea cable landing stations to enhance international connectivity.
State IT Minister Nara Lokesh said the partnership would transform Visakhapatnam into a digital gateway for South and Southeast Asia, while also building a strong local ecosystem for data and AI-related services.
Reports initially placed Google’s investment at around $6 billion, including $2 billion dedicated to renewable energy capacity for the project.
However, later official statements raised the figure to nearly $10 billion as the full scope of associated infrastructure, training, and ancillary developments became clearer.
Neither the company nor the state government has yet issued a comprehensive public document detailing the exact financial structure of the deal.
Andhra Pradesh, meanwhile, is targeting a total of 6GW in data-centre capacity over the next few years, using the Google investment as a catalyst. Lokesh has said that around 1.6GW worth of commitments are already in place and could come online within two years.
Analysts note that this would represent one of the fastest expansions of hyperscale infrastructure in India, which so far has been concentrated around Mumbai, Chennai, and Hyderabad.
The state government expects the project to generate large-scale employment and economic growth. Preliminary estimates suggest up to 188,000 direct and indirect jobs could be created through construction, operations, and related services.
Officials have also highlighted the introduction of tax incentives and simplified clearances to attract global data-centre investors to the region.
The deal aligns with Google’s broader global strategy to expand AI compute capacity and cloud services. With demand for high-performance computing soaring due to generative AI and data-heavy applications, India has become a key strategic location.
For Andhra Pradesh, the move is an opportunity to diversify its industrial base and strengthen its claim as a national technology hub.
However, experts caution that large data-centre projects bring significant challenges. They require vast amounts of power, water, and land—raising concerns about sustainability and environmental management.
Ensuring a balance between rapid industrialisation and ecological responsibility will be critical as construction begins.
A formal signing ceremony involving the Andhra Pradesh Chief Minister and central government officials is expected soon, after which detailed plans for land allocation, energy procurement, and regulatory approvals will be finalised.
Google representatives have confirmed the project is subject to standard clearances but reaffirmed the company’s commitment to long-term investment in India’s digital infrastructure.
As hyperscale and AI infrastructure becomes central to the global tech economy, Visakhapatnam’s transformation could mark a pivotal shift in how and where India hosts the next wave of data innovation.
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