^{Photo: Google Blog}

In a landmark move signaling India’s growing importance in the global technology ecosystem, Google announced a $15 billion investment to build a large-scale AI and data center hub in the southern state of Andhra Pradesh. This will be Google’s largest data center project outside the United States, underscoring the company’s confidence in India’s digital future.

The announcement came from Thomas Kurian, CEO of Google Cloud, during a technology summit held on Tuesday. Kurian described the initiative as a major milestone in expanding Google’s global AI infrastructure, saying the investment will roll out over the next five years and “position India as a central node in the world’s AI network.”

A Year in the Making

The project, which has been in development for over a year, follows what Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, described as “a year of intense discussions and relentless effort.” He added that the deal “is just the beginning,” hinting at further collaborations between Google and Indian authorities.

Earlier estimates placed the project’s initial phase at around $10 billion for a 1-gigawatt facility, according to Lokesh. However, with Google’s extended commitment, the total investment has now climbed to $15 billion, making it one of the single largest technology infrastructure projects in India’s history.

Building India’s AI Future

According to The Economic Times, the investment will be carried out through Google’s Indian subsidiary Raiden Infotech, which plans to establish three large-scale campuses in the coastal city of Visakhapatnam. These campuses will host advanced AI training clusters, high-performance computing systems, and cloud storage infrastructure designed to support India’s fast-growing digital economy.

State officials have also confirmed plans to double Andhra Pradesh’s computing capacity over the next three years, aligning with India’s national goal to become a major player in AI development and digital innovation.

Global Tech Race for Infrastructure

This announcement comes as global technology companies are racing to expand their data center capacity amid surging demand for cloud services and AI computing. Giants like Microsoft, Amazon Web Services (AWS), and Meta have also stepped up investments in the region, attracted by India’s growing developer ecosystem and favorable government policies.

In July, Google raised its 2025 capital expenditure forecast to $85 billion, up from $75 billion earlier in the year, largely driven by soaring demand for its cloud and AI services. The company has already committed $25 billion to similar infrastructure projects across the United States—highlighting how India’s new hub is becoming a critical extension of Google’s global cloud operations.

Why India?

India’s strategic location, abundant tech talent, and push for data localization have made it a prime destination for international data infrastructure. The government’s emphasis on digital transformation through initiatives like “Digital India” and “AI for All” has further incentivized global players to establish long-term roots in the country.

Industry analysts predict that India’s data center market could exceed $13 billion by 2027, growing at a compound annual rate of nearly 25%. This surge is fueled by rapid digitization, expanding internet access, and the increasing integration of AI in both public and private sectors.

A Defining Moment for India’s Tech Landscape

Google’s new AI hub is more than just a massive infrastructure investment—it represents a strategic partnership between global technology and India’s innovation economy. Once operational, the Visakhapatnam campuses are expected to generate thousands of high-skilled jobs, attract secondary tech investments, and solidify India’s role as a central force in the next wave of global AI and cloud advancements.

As Minister Nara Lokesh aptly stated, “This is just the beginning.” For both Google and India, this project could mark the start of a transformative era in the world’s digital infrastructure landscape.