Google is set to make one of its largest investments in India, announcing plans to build a massive data center and artificial intelligence hub in Andhra Pradesh for $10 billion (roughly Rs 8.9 lakh crore). The southern state's officials confirmed the development, describing it as a "transformative leap" for both the region and the country's digital economy.

Key Highlights

• Google plans a $10–15 billion AI-data-centre project in Andhra Pradesh, marking one of India’s biggest FDI deals.
• The investment is expected to power a 1-gigawatt hub in Visakhapatnam and significantly bolster India–Middle East digital connectivity.

A massive investment in Visakhapatnam

According to an announcement from the Andhra Pradesh government, Google will build a 1-gigawatt data center campus in the port city of Visakhapatnam. The facility will incorporate cutting-edge AI infrastructure, reliable energy sources, and an expanded fibre-optic network, bolstering India's position as a global technology leader.

A formal project agreement is expected to be signed on Tuesday. Once operational, the facility will not only meet India's rapidly growing data needs, but will also play an important role in Google's global AI ecosystem.

'India's Biggest FDI Investment Ever'

The state government stated that it has worked closely with the Centre to ensure a smooth approval process for the $10 billion investment. "We ensured that there is no retrospective taxation in this space (data centers). Since data will be processed in these centres, we received clarification from the Central government on how it will be taxed," said Nara Lokesh, Andhra Pradesh's Minister for Information Technology, Electronics, and Communications, in an interview.

Lokesh, who has been closely involved in the project's negotiations, stated that his first meeting with Google executives occurred in September 2024. "I personally drove them to Vishakhapatnam, where the hyperscale data center will be built. "It will be India's largest FDI investment ever," he added.

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Job Creation and Economic Boost

The project, led by Google's subsidiary Raiden Info Tech, costs Rs 87,520 crore (approximately $10 billion). It is expected to generate approximately 188,000 jobs and contribute Rs 10,518 crore to Andhra Pradesh's gross state domestic product (GSDP) between 2028 and 2032.

Global Race for AI Dominance

Google's announcement comes amid a global race among tech titans such as Microsoft, Amazon, and Meta to expand data infrastructure in response to rising demand for artificial intelligence services. With this move, India will play a critical role in advancing next-generation AI applications, cloud services, and large-scale data processing capabilities.

The investment is a significant step toward Andhra Pradesh's goal of becoming a leading technology and innovation destination in South Asia. The Visakhapatnam campus, once completed, is expected to be one of the largest AI and data infrastructure projects in the region.