Google will invest $15 billion over five years to build an artificial intelligence data center campus in Andhra Pradesh, with the first phase having a capacity of 1 GW.
Google will invest $15 billion over five years to build an artificial intelligence data center campus in Andhra Pradesh, with the first phase having a capacity of 1 GW.
According to Reuters, the data center will be built in the port city of Visakhapatnam; it is Google’s largest investment in India. State officials previously estimated the project at $10 billion, but the company confirmed the plan at $15 billion over a five-year period.
Google explains the move by the explosive demand for AI computing and the expansion of global infrastructure: this year alone, the corporation will spend about $85 billion on data center capacity around the world. Against the background of this race, Microsoft and Amazon are also actively building infrastructure in India, a country with almost a billion Internet users.
The hub in Visakhapatnam will start at 1 GW and is designed to scale to «multiple gigawatts.» A new international undersea gateway and partnerships with local players Bharti Airtel and Adani are planned to deliver the traffic. According to Google Cloud CEO Thomas Kurian, this is «the largest AI hub outside the US» and will accelerate India’s «national AI mission.»
The investment comes against a backdrop of strained relations between the US and India, including tariffs and stalled trade deals. New Delhi has privately assured American companies of its commitment to simple business rules, while Bangalore and Mumbai remain key data infrastructure hubs in the region.
For Google, it’s not just about hardware. The company is building a hub capable of clustering thousands of specialized chips for training and inferring models, and is also bolstering the region’s network capacity with undersea cables and energy contracts. These investments are raising the bar on reliability and latency for services from search to the cloud, and are laying the groundwork for the next phase of AI competition.
India is becoming a major hub for cloud and AI infrastructure: in addition to global corporations, local giants Adani and Reliance (Airtel) are also building data centers. The scale and pace of such projects will determine how quickly businesses and consumers will receive «heavy» AI services: from translation and multimodal assistants to real-time industry analytics. For Google, the Indian hub with 1 GW of initial capacity is a link in a wider chain of infrastructure deployment in Asia and a key bet on the growth of a market where Android and YouTube already dominate.
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