Google on Tuesday announced a $15 billion investment over the next five years to build a massive artificial intelligence (AI) data centre campus in Andhra Pradesh’s port city of Visakhapatnam, marking its largest-ever investment in India and its biggest AI hub outside the United States.
The investment, covering the period from 2026 to 2030, will support data infrastructure, clean energy generation, and transmission networks, according to a joint statement by Google and the Andhra Pradesh government.
“This long-term vision we have is to accelerate India’s own AI mission,” said Thomas Kurian, CEO of Google Cloud, at the Bharat AI Shakti event in New Delhi. “It’s the largest AI hub that we are going to be investing in anywhere in the world outside of the US.”
Multi-faceted AI infrastructure
The 1-gigawatt (GW) data centre campus will combine AI infrastructure, large-scale energy sources, and an expanded fibre-optic network. It will also include the construction of a new international subsea gateway, enhancing India’s digital connectivity.
“This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure,” said Sundar Pichai, CEO of Alphabet Inc., in a post on X. “Through it we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.”
Prime Minister Narendra Modi welcomed the investment, calling it “a powerful force in democratising technology.”
“Delighted by the launch of the Google AI Hub in the dynamic city of Visakhapatnam, Andhra Pradesh,” Modi said in a post on X. “It will deliver cutting-edge tools to our citizens, boost our digital economy, and secure India’s place as a global technology leader.”
Andhra Pradesh Chief Minister N. Chandrababu Naidu confirmed that Google had raised its initial commitment from $10 billion to $15 billion. “We must focus on upskilling our youth to take advantage of emerging AI opportunities,” he said.
Partnership with Adani and Airtel
The project will be co-developed with AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, alongside Airtel as a key partner.
“A monumental day for India!” wrote Gautam Adani, chairman of the Adani Group, on X. “This facility will house the TPU and GPU-based compute power required for deep learning, neural network training, and large-scale AI model inference, creating an ecosystem that accelerates AI-driven solutions for India’s most critical sectors — from healthcare and agriculture to logistics and finance.”
Google said the project will include co-investments in transmission lines, clean energy generation, and innovative energy storage systems in Andhra Pradesh.
Economic impact and job creation
A Google-commissioned analysis estimates the AI hub could generate $15 billion in new economic activity over the next five years, driven by AI adoption and digital transformation across sectors. Earlier state projections suggested the project could create up to 188,000 direct and indirect jobs.
Government and industry response
Union finance minister Nirmala Sitharaman lauded Naidu’s long-standing digital vision, saying, “It is just the right place to land in and the right country to be in. Policy is pushing ahead much before many in the political arena are even ready to absorb.”
Union IT Minister Ashwini Vaishnaw said the facility will strengthen India’s AI Mission, supporting startups and young innovators. “This data centre will augment the AI infrastructure needed to ensure our youth and startups get the facilities required to build their products and services,” he said.
US-India trade tensions
The announcement comes amid a tense diplomatic standoff between New Delhi and Washington over tariffs and a stalled trade deal. US multinationals have faced boycott calls in India following new American tariffs on Indian goods.
“This initiative creates substantial economic and societal opportunities for both India and the United States,” Google said in a statement, without directly referring to the trade tensions.
Despite the backdrop of trade friction, Indian officials have privately assured US companies of a supportive business environment, two sources told Reuters on condition of anonymity.
Growing AI race
With nearly a billion internet users, India is emerging as a key battleground for global tech giants. Microsoft and Amazon have already made multi-billion-dollar bets on AI and cloud infrastructure, while Indian conglomerates such as Adani and Reliance are rapidly expanding data capacity.
Google, whose Android system dominates smartphones and YouTube has the most users in India, sees the country as central to its future growth despite ongoing antitrust challenges and legal scrutiny.