Google to Build ₹1.25 Lakh Crore Data Centre, AI Hub in Visakhapatnam

The project is also expected to spur large-scale development of ancillary sectors — including energy, cooling, logistics, and data security — creating a multiplier effect on Andhra Pradesh’s economy.

In a landmark announcement for India’s digital infrastructure and innovation ecosystem, Google has unveiled plans to establish a 1-gigawatt (GW) hyperscale data centre and artificial intelligence (AI) hub in Visakhapatnam, Andhra Pradesh, with an investment of approximately $15 billion (₹1.25 lakh crore) over the next five years (2026–2030).

The announcement was made during the Bharat AI Shakti event in New Delhi, attended by top government and corporate leaders. The ambitious project — Google’s first gigawatt-scale data centre and first AI hub in India — is expected to become a defining milestone in India’s technological transformation and Andhra Pradesh’s emergence as a global digital hub.

Economic Impact: ₹10,000 Crore in Revenue, 30,000 Jobs

Speaking to the media, Union Minister of State for Communications and Rural Development, Dr. Pemmasani Chandrasekhar, described the project as a “transformative step for Swarandhra Pradesh’s journey towards progress, innovation, and self-reliance.”

He said the facility is projected to generate ₹10,000 crore in annual revenue for the state while creating 5,000–6,000 direct jobs and 20,000–30,000 indirect and ancillary jobs. “This investment will bring with it cutting-edge technology, infrastructure, and a new wave of digital talent development,” he noted.

The project is also expected to spur large-scale development of ancillary sectors — including energy, cooling, logistics, and data security — creating a multiplier effect on Andhra Pradesh’s economy.

India’s First Gigawatt-Scale Data Centre

The proposed 1-GW facility will be among the largest data centres in Asia, and the first in India designed to operate on such a massive scale. It will host AI computing clusters, hyperscale cloud infrastructure, and advanced cybersecurity systems, making it the backbone of India’s AI and cloud ecosystem.

With its strategic location in Visakhapatnam, a coastal city known for its connectivity and industrial base, the centre will leverage renewable power sources and energy-efficient cooling technologies, aligning with Google’s global commitment to net-zero carbon emissions by 2030.

Dr. Chandrasekhar said the centre will bring “critical infrastructure such as high-capacity power grids, smart cooling systems, and green energy integration,” positioning Andhra Pradesh as a leader in sustainable digital infrastructure.

A New AI Hub for India

The upcoming Google AI Hub in Visakhapatnam will serve as an innovation and research centre for artificial intelligence, focusing on AI for agriculture, healthcare, language technology, and digital governance. It will also host AI labs, training institutes, and collaborative R&D spaces for startups, researchers, and developers.

This initiative complements the Government of India’s “Bharat AI Mission”, which seeks to make India a global hub for artificial intelligence by fostering innovation, ethics, and inclusivity in the sector.

Leadership and Collaboration

The Bharat AI Shakti event was attended by key dignitaries, including Union Minister for Railways, Information & Broadcasting, and Electronics & IT, Shri Ashwini Vaishnaw; Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman; Chief Minister of Andhra Pradesh, Shri N. Chandrababu Naidu; IT Minister of Andhra Pradesh, Shri Nara Lokesh; and Google Cloud CEO, Shri Thomas Kurian.

Dr. Chandrasekhar extended his gratitude to Prime Minister Shri Narendra Modi for his unwavering support in attracting global technology investments to India, and to Chief Minister N. Chandrababu Naidu and IT Minister Nara Lokesh for their leadership in making Andhra Pradesh a preferred investment destination for digital enterprises.

He said, “This project demonstrates how synergy between the Centre and State can accelerate India’s transformation into a digital superpower. It will redefine Andhra Pradesh’s position on the global technology map.”

Boosting Digital Infrastructure and Economic Growth

The Google Data Centre will play a key role in advancing the objectives of Digital India, Make in India, and India AI Mission, by strengthening data localization, cybersecurity, and digital services infrastructure.

It will also help reduce latency for cloud and AI services, improve connectivity for businesses, and support startups leveraging Google Cloud’s ecosystem. Additionally, the project will accelerate smart governance, enabling government departments to adopt data-driven decision-making powered by AI and cloud analytics.

The state government of Andhra Pradesh has pledged to provide land, power infrastructure, and connectivity support for the project, with assurances of fast-track clearances and long-term policy incentives under its Industrial and IT Policy 2025–2030.

Positioning Visakhapatnam as India’s Digital Capital

With this project, Visakhapatnam is poised to emerge as India’s “Digital Capital of the East”, complementing Bengaluru, Hyderabad, and Pune in driving India’s technology ecosystem.

According to state officials, the city’s growing ecosystem of educational institutions, skilled workforce, and port-based logistics infrastructure makes it ideal for hosting large-scale digital investments.

IT Minister Shri Nara Lokesh stated that the Google AI Hub will also foster collaboration between universities, research institutions, and startups, creating new opportunities for innovation and entrepreneurship. “Visakhapatnam will soon be home to India’s most advanced AI research and computing ecosystem, attracting global talent and investment,” he said.

Global Confidence in India’s Digital Vision

The Google investment follows a series of high-value digital infrastructure commitments made by global technology giants to India in recent years. Analysts note that this signals growing international confidence in India’s stable policy environment, large consumer base, and digital-first governance approach.

“Google’s decision to invest at this scale reflects faith in India’s long-term digital growth story and the government’s vision of making India a global technology and data hub,” said a senior official at the Ministry of Electronics and IT.

A Vision for the Future

Dr. Chandrasekhar concluded that the Google project is not just an economic investment but a strategic milestone in India’s technological evolution.

“This initiative will not only create jobs and drive economic growth but also equip our youth with the skills and opportunities needed for the future,” he said. “It represents India’s journey towards digital self-reliance, sustainability, and leadership in artificial intelligence.”

The 1-GW Google Data Centre and AI Hub is expected to begin construction in mid-2026, with phased operational rollout starting in 2028. Once completed, it will stand as one of the largest digital infrastructure projects in the Global South, symbolizing the next era of India’s digital empowerment and global innovation leadership.