Google has announced an investment of ₹88,000 crore (approximately $10 billion) in Andhra Pradesh to develop advanced artificial intelligence (AI) and data infrastructure, marking one of the largest technology commitments made by a global company in India. The investment will include setting up a 1-gigawatt (GW) data center in Visakhapatnam, designed to serve as the backbone of Google’s expanding cloud and AI operations in the region.
The announcement was confirmed during a meeting between Google executives and Andhra Pradesh Chief Minister N. Chandrababu Naidu, who described the partnership as a "gamechanger" for the state and the broader Indian technology ecosystem. The project aims to transform Andhra Pradesh into one of Asia’s leading AI and digital innovation hubs, with operations expected to begin over the next three years.
The 1GW facility, to be established in Vizag’s AI City, will be among the largest data centers in Asia. It will leverage renewable energy sources, in line with Google’s global goal to operate on carbon-free energy by 2030. The initiative will also focus on building AI-driven tools for sectors such as education, healthcare, agriculture, and governance, aligning with India’s digital growth priorities.
According to government officials, the data center will generate approximately 20,000 direct and indirect jobs, including positions in construction, IT, data science, and AI research. The investment will also catalyze local businesses, startups, and universities through research partnerships, digital training programs, and technology grants.
Chief Minister Naidu, known for his long-standing advocacy of digital transformation, welcomed Google’s investment, emphasizing its potential to “turn Andhra Pradesh into a national hub for artificial intelligence and data innovation.” He noted that the partnership will help the state move toward self-reliant AI infrastructure, attracting global technology players to set up complementary ecosystems in the region.
“Google’s ₹88,000 crore investment is not just about technology infrastructure but about creating an entire digital economy in Andhra Pradesh,” Naidu said. “This collaboration will redefine how governments and global companies can work together to shape the next generation of AI-led growth.”
The collaboration reflects Google’s strategy to deepen its footprint in India, one of the world’s fastest-growing digital markets. India currently represents one of Google Cloud’s largest expansion territories, driven by the increasing adoption of cloud services, data analytics, and AI tools by Indian enterprises.
Industry experts believe the Vizag facility will play a critical role in Google’s long-term cloud strategy, particularly in enabling AI model training and large-scale data processing for clients across Asia-Pacific. With rising demand for AI-driven services, global cloud players such as Microsoft, Amazon, and Meta have also expanded their data center operations in India.
The new center will reportedly feature cutting-edge AI chips and advanced cooling technologies, making it one of Google’s most energy-efficient facilities worldwide. The investment also aligns with India’s broader policy objectives under the Digital India and AI Mission initiatives, which encourage global partnerships to develop ethical, scalable AI systems domestically.
In addition to infrastructure, Google is expected to launch AI research programs in collaboration with Indian universities and offer cloud computing scholarships to train local talent. The company’s AI for India program, which previously focused on developing tools for farmers and small businesses, will now expand to include predictive analytics, generative AI applications, and natural language technologies in regional Indian languages.
The partnership with Andhra Pradesh comes at a time when the state is positioning itself as a technology-driven economy. The AI City project in Vizag, first proposed in 2023, aims to create a multi-billion-dollar ecosystem integrating startups, research labs, and multinational technology firms. Google’s participation adds global legitimacy to the initiative and is expected to draw further investment from other international players.
Google executives stated that the company views India as a key driver in the global AI economy, with its young talent pool and growing cloud adoption rate making it ideal for innovation. “Our goal is to empower India’s digital ecosystem with scalable AI infrastructure and research capabilities,” a Google spokesperson said.
The move also supports the Indian government’s recent push for AI sovereignty and data localization, ensuring that critical data infrastructure remains within national boundaries. The data center will comply with India’s Digital Personal Data Protection Act (DPDPA) 2023, ensuring secure handling of user and enterprise data.
Analysts predict that Google’s investment could boost India’s competitiveness in AI and cloud technology, helping the country position itself as an alternative to China for global data infrastructure. According to a Nasscom report, India’s AI market is expected to reach $17 billion by 2027, with cloud adoption playing a central role in driving this growth.
The Vizag project’s development timeline spans three years, with construction slated to begin in early 2026. The facility will be operational in phases, initially catering to enterprise cloud services before scaling to include consumer AI applications.
Local stakeholders have hailed the investment as a catalyst for economic revival in Andhra Pradesh, particularly following the state’s renewed focus on industrial and digital development. Infrastructure investments such as this are expected to significantly boost ancillary sectors like power, transport, and real estate.
For Google, the partnership marks another step in its long-term commitment to India. Over the past decade, the company has launched several initiatives to promote digital literacy, AI for social good, and small business transformation. With this new investment, Google strengthens its position as a strategic technology ally in India’s digital future.
As the project takes shape, Andhra Pradesh’s emergence as an AI infrastructure hub could redefine the state’s role in India’s technology map, setting a benchmark for other regions looking to attract large-scale tech investments. The collaboration between Google and the Andhra Pradesh government underscores a shared vision—one where technology becomes the foundation for inclusive growth, innovation, and digital sovereignty.