Key Highlights –
- Google to invest $15 billion over five years in Andhra Pradesh for an AI data centre hub.
- The Visakhapatnam facility is to become Google’s largest AI hub outside the US.
- Move marks a major step in the AI infrastructure race among global tech giants.
Google has announced a $15 billion investment over the next five years to establish a large-scale artificial intelligence (AI) data centre hub in Andhra Pradesh, marking one of its biggest commitments in India to date. The Google India AI Investment project was announced at an event in New Delhi on Tuesday, and will see a 1-gigawatt campus take shape in Visakhapatnam, the southern state’s key port city.
Google’s $15 Billion Bet on India’s AI Future
“This will be the largest AI hub we are investing in anywhere in the world outside the United States,” Google Cloud CEO Thomas Kurian said during the announcement. The move signals Google’s strong belief that India is poised to become a cornerstone of the global AI ecosystem.
💥 Historic Moment for Vizag! 💥@googlecloud CEO Thomas Kurian announces a $15B investment to build a 1 GW AI Hub in #Visakhapatnam — the largest outside the US 🌍⚡
— Andhra Community (@AndhraCommunity) October 14, 2025
In the next 5 years, #Vizag will rise as a global AI & connectivity powerhouse, giving India its digital… pic.twitter.com/7HQd3vzD8V
Strategic Move Amid Growing Tech Rivalry
As per a news report by Reuters, Andhra Pradesh officials had earlier estimated Google’s investment at $10 billion, but the official figure has now climbed to $15 billion, a clear sign of rising infrastructure ambitions. The Google India AI Investment project underscores Google’s intent to compete aggressively with Microsoft and Amazon, both of which have already poured billions into Indian data centres to meet surging cloud and AI demands.
Google alone plans to spend around $85 billion this year globally to expand its data centre footprint, according to Bloomberg, as the company races to power the next generation of AI applications. Artificial intelligence requires enormous computing power, pushing demand for advanced, energy-intensive facilities capable of linking thousands of chips together in clusters.
Why Visakhapatnam Matters
The 1-gigawatt facility will be built in Visakhapatnam, a coastal city strategically chosen for its port connectivity, energy infrastructure, and logistical advantages. The location aligns with Google’s long-term plan to expand across Asia, complementing existing or planned data centres in Singapore, Malaysia, and Thailand.
"Proud to announce, with support from the Govt of India & AP, a new gigawatt-scale AI hub in Visakhapatnam.
— Gulte (@GulteOfficial) October 14, 2025
It is the largest outside the US, with a $15B investment over 5 years."
– Thomas Kurian, Google Cloud CEO
(THE SPARK IN THE EYES OF NARA LOKESH) pic.twitter.com/CzwFvg1yfL
Local leaders have welcomed the move. Andhra Pradesh’s IT Minister Nara Lokesh said the project represents a “strategic advantage in an era where data is the new oil.” Furthermore, the investment is also expected to boost employment opportunities, attract ancillary industries, and strengthen India’s AI ecosystem.
India’s Growing Role in the Global AI Race
India’s nearly one billion internet users make it an ideal market for AI and cloud expansion. As Microsoft and Amazon Web Services (AWS) scale up their infrastructure, with AWS alone planning to invest $12.7 billion in India by 2030, Google’s latest bet ensures it won’t be left behind.
Additionally, the new Visakhapatnam campus will be Google’s largest in Asia, both in terms of capacity and capital investment. According to analysts, the Google India AI Investment is part of a broader multi-billion-dollar regional push that will position Google to meet AI demand across the Asia-Pacific region.
Sustainability & Challenges Ahead
While the move reinforces India’s position as a global data centre hub, it also raises questions about sustainability. AI infrastructure consumes massive amounts of power and cooling resources, forcing companies like Google to explore renewable energy partnerships to maintain carbon-neutral operations.
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Moreover, regulatory hurdles, environmental clearances, and land acquisition could pose challenges to timely completion. However, with strong state support and global strategic value, the Visakhapatnam AI hub is expected to move ahead swiftly.
In the long run, the investment is likely to catalyse a regional tech transformation, drawing AI startups, chip manufacturers, and digital service providers to Andhra Pradesh. For India, this could mark a turning point, shifting from being a major consumer of digital technology to becoming a core producer of AI infrastructure.
