Google is set to make one of its most significant investments in India, announcing plans to pour $10 billion (roughly Rs 8.9 lakh crore) into building a vast data centre and artificial intelligence hub in Andhra Pradesh. The southern state’s officials confirmed the development, calling it a “transformative leap” for both the region and the country’s digital economy.
A Mega Investment In Visakhapatnam
According to a statement from the Andhra Pradesh government, the upcoming project will see Google establish a 1-gigawatt data centre campus in the port city of Visakhapatnam. The facility will integrate advanced AI infrastructure, robust energy sources, and an expanded fibre-optic network, strengthening India’s position as a global technology powerhouse.
A formal agreement for the project is expected to be signed on Tuesday. Once operational, the facility will not only cater to India’s rapidly growing data needs but also serve as a critical node in Google’s worldwide AI ecosystem.
‘India’s Largest FDI Investment Ever’
The state government said it has worked closely with the Centre to ensure a smooth clearance process for the $10-billion investment. “We made sure that there is no retrospective taxation in this space (data centres). Since data will get processed in these centres, we got clarity from the Central government, how will it be taxed,” said Nara Lokesh, Andhra Pradesh’s Minister for Information Technology, Electronics and Communications, in an interview with Moneycontrol.
Lokesh, who has been closely involved in the project’s negotiations, said his first meeting with Google executives took place in September 2024. “I drove them personally to the site in Vishakhapatnam where the hyperscale data centre will be built. It’s going to be India’s largest FDI investment ever,” he noted.
Job Creation And Economic Boost
The project, led by Google’s subsidiary Raiden Info Tech, represents an investment of Rs 87,520 crore (approximately $10 billion). It is projected to create around 188,000 jobs and contribute Rs 10,518 crore annually to Andhra Pradesh’s gross state domestic product (GSDP) between 2028 and 2032.
Global Race For AI Dominance
Google’s announcement comes amid an intensifying global race among tech giants such as Microsoft, Amazon, and Meta to expand data infrastructure to meet surging demand for artificial intelligence services. With this move, India is poised to play a pivotal role in supporting next-generation AI applications, cloud services, and large-scale data processing capabilities.
For Andhra Pradesh, the investment marks a milestone in its ambition to become a premier destination for technology and innovation in South Asia. The Visakhapatnam campus, once completed, is expected to stand as one of the largest AI and data infrastructure projects ever built in the region.
