^{Photo: Bloomberg.com}

In a move set to redefine India’s role in the global digital economy, Google has announced a $15 billion investment to establish a large-scale AI and data center hub in southern India, making it the company’s largest such facility outside the United States.

The project will be located in Visakhapatnam, Andhra Pradesh, and will significantly expand Google’s presence in Asia. The announcement was made by Google Cloud CEO Thomas Kurian at a tech summit on Tuesday, confirming that the investment will roll out over the next five years.

A Landmark Deal After a Year of Negotiations

According to Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, the deal follows “a year of intense discussions and relentless effort” between Google executives and the state government. Calling the agreement “just the beginning,” Lokesh said the collaboration marks a new chapter in India’s journey toward becoming a global AI innovation hub.

The 1-gigawatt project, estimated initially at $10 billion, will be executed by Google’s Indian subsidiary, Raiden Infotech, which plans to build three advanced data center campuses across the Visakhapatnam region. These facilities will provide the backbone for Google’s expanding AI infrastructure, serving global clients while boosting India’s domestic AI capabilities.

Why India Is Becoming the Next Big AI Powerhouse

India has emerged as one of the fastest-growing destinations for AI and cloud infrastructure investment, driven by a booming digital economy, a skilled tech workforce, and favorable government policies.

Over the past two years, global tech companies—including Microsoft, Amazon Web Services (AWS), and Oracle—have announced multibillion-dollar data center expansions in India. The country’s total data center capacity is projected to exceed 1,300 megawatts by 2026, nearly triple its 2022 level, according to industry estimates.

Andhra Pradesh, with its strategic coastal location and robust energy infrastructure, is positioning itself as a preferred destination for such large-scale projects. State officials have pledged continued support for AI and cloud investments, promising to expand computing capacity by over 200% in the next three years.

Fueling the AI Revolution

Tech giants are racing to build more data centers as AI-driven workloads surge worldwide. The explosion of generative AI applications—ranging from large language models to advanced analytics—has pushed demand for high-performance computing to record levels.

Google, which already operates massive cloud infrastructure across the U.S. and Europe, is using the India hub to balance global workloads and reduce operational latency for its growing user base in Asia.

The investment also complements Google’s global infrastructure expansion plans. During its second-quarter 2025 earnings, the company increased its capital expenditure forecast to $85 billion, up from $75 billion earlier in the year, citing “strong and growing demand for Cloud products and AI services.”

In July, Google revealed plans to invest an additional $25 billion in AI and data center infrastructure across several U.S. states, underscoring its long-term commitment to AI-led growth.

A Catalyst for India’s Digital Transformation

The Visakhapatnam project is expected to create tens of thousands of direct and indirect jobs, boost local technology ecosystems, and attract AI startups to Andhra Pradesh. The initiative aligns with India’s broader digital vision, which includes efforts to expand 5G connectivity, digital public infrastructure, and AI research programs.

Experts say this move not only cements India’s place as a key pillar in the global AI supply chain but also demonstrates confidence from Silicon Valley in India’s stability, scalability, and innovation potential.

As global competition for AI dominance heats up, Google’s $15 billion commitment sends a clear message—the future of artificial intelligence will be built not just in Silicon Valley, but also along the shores of Visakhapatnam.