Google’s parent company, Alphabet, has announced plans to invest $15 billion to build a major AI data hub in Visakhapatnam, located in India’s southern Andhra Pradesh state.
The new facility will be part of Google’s global network of AI centers across 12 countries and will be the company’s largest AI hub outside the United States, according to Thomas Kurian, CEO of Google Cloud. The investment will be spread over the next five years.
The announcement comes as U.S. President Donald Trump urges American firms to prioritize domestic investments. However, India’s fast-growing digital economy, low data costs, and expanding internet user base continue to make it an attractive destination for AI and cloud infrastructure.
Alphabet CEO Sundar Pichai said the project will help “accelerate AI innovation and drive growth across India,” bringing advanced technology to local enterprises and users.
The Andhra Pradesh government confirmed that a formal agreement will be signed soon. Technology Minister Nara Lokesh hailed the project as “a massive leap for our state’s digital future and innovation.”
The AI hub will integrate cloud computing and renewable energy systems, supported by an expanded fiber-optic network. It aligns with the state’s goal to develop 6GW of data center capacity by 2029, according to Bloomberg News.
India’s data center capacity has already surpassed 1GW in 2024, nearly tripling its 2019 level, according to JLL’s India Data Centre Market Dynamics 2024 report. The government continues to attract global investors by offering subsidized land and electricity for such projects.