Hyderabad, May 11: Google will set up its own facility in Hyderabad. The company has signed an agreement with the Andhra Pradesh government to buy land for its R&D centre, to be spread over 20 acres with a capacity to house 4,000 people.

The $10-billion Internet search giant now employes 1,000 people at its leased premises in Hyderabad.

“India is an exciting market. Google’s products and services have received a very encouraging response and our offices have grown significantly,” said Roy Gilbert, Google India director (online sales and operations).

Gilbert signed the agreement with Andhra IT secretary Shailendra Kumar Joshi on Friday.

Andhra Pradesh chief minister Y.S. Rajasekhara Reddy said: “We want to create an environment where more companies would want to partner with us. Such investments help in accelerating the country’s economic growth, besides providing gainful employment.”