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NEW DELHI – In a massive commitment to India’s digital future, Alphabet Inc., the parent company of Google, announced a $15 billion (£11.29bn) investment over the next five years to establish a major Artificial Intelligence (AI) data hub in the port city of Visakhapatnam, Andhra Pradesh.
The facility will be the largest AI hub Google is investing in anywhere in the world outside of the United States, a clear indication of India’s growing strategic importance in the global technology ecosystem.
“It’s the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States,” confirmed Thomas Kurien, the CEO of Google Cloud, at a press event in Delhi on Tuesday.
Accelerating AI and Global Connectivity
The Visakhapatnam facility will be integrated into Google’s global network of AI centers across 12 countries. The project is multi-faceted, combining a gigawatt-scale cloud and AI infrastructure with advanced renewable energy systems and an expanded fibre-optic network, which is essential for low-latency AI and cloud computing.
Alphabet CEO Sundar Pichai highlighted the project’s transformative potential, stating the hub “will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.”
The formal agreement for the project was set to be signed on Tuesday, with Andhra Pradesh’s technology minister, Nara Lokesh, hailing it as “a massive leap for our state’s digital future, innovation, and global standing.” The project aligns with the Andhra Pradesh government’s ambitious plan to develop 6GW of data centre capacity by 2029.
India: A Crucial Data Center Destination
The substantial investment comes at a time when global tech giants are aggressively expanding their AI infrastructure, recognizing India as a key market. The country’s expanding internet user base and increasingly favorable policies have made it a hub for cloud and AI expansion.
India’s data center industry has experienced rapid growth, having surpassed the 1GW capacity mark in 2024, according to a JLL report. State governments, including Andhra Pradesh, have been actively attracting global investors by offering incentives such as subsidized land and electricity.
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