In a sweeping commitment to India’s digital future, Google today announced plans to develop its first full-stack Artificial Intelligence (AI) hub in Visakhapatnam (Vizag), Andhra Pradesh its largest investment in India to date. The five-year plan (2026–2030) calls for roughly USD 15 billion in capital deployment across compute, connectivity, energy and infrastructure.
Strategic Ambition & Infrastructure Blueprint
Gigawatt-Scale Compute Campus
The AI hub will be anchored by a 1-gigawatt data-center campus, engineered for scale and high performance to support AI, research, cloud and enterprise workloads. Google says it will deploy its full AI stack, drawing on infrastructure and innovations already powering Search, YouTube, Google Workspace, and Gemini models.
Subsea Gateway & Fiber Network
A crucial element is a new international subsea cable landing and connectivity gateway in Visakhapatnam. Multiple new cables will land there, linking into Google’s vast global terrestrial and undersea cable network. This is expected to boost connectivity, route diversity, and digital backbone resilience for India and the wider Asia-Pacific region.
The hub will also integrate expanded fiber-optic infrastructure to deliver low-latency, high-throughput services to Indian users and enterprises.
Clean Energy & Grid Resilience
Given the energy intensity of AI and hyperscale computing, Google has pledged to work with local partners in Andhra Pradesh to build new transmission lines, energy storage and clean-energy generation capacity. The investment aims to expand the region’s renewable energy mix and bolster grid resilience.
Partnerships, Roles & Governance
Google will collaborate with AdaniConneX (a JV of Adani Enterprises) and Airtel to build and operate the AI hub and its auxiliary systems. Officials say the project will be facilitated through Andhra Pradesh’s investment-promotion mechanisms and single-window clearances.
In December 2024, Google and the Andhra Pradesh government had already signed an MoU to establish an AI data center in Visakhapatnam, paving the way for today’s announcement.
Economic & Geostrategic Impacts
Scale of Investment & ROI Claims
According to Google and a commissioned analysis by Access Partnership, the hub is expected to generate at least USD 15 billion in additional U.S. GDP over five years (2026–2030) via cloud and AI adoption, hiring, and innovation spillovers.
From the Indian side, Andhra Pradesh officials estimate that the project will yield annual GSDP gains of around ₹10,518 crore during 2028–2032, and support productivity spillovers worth ₹9,553 crore annually over five years. Job-creation projections suggest up to 1,88,000 jobs per year at peak activity.
India’s AI Leadership & Sovereignty
By combining compute, energy, and connectivity in one hub, Google seeks to enable Indian enterprises, startups and government agencies to build and deploy AI solutions with low latency, localized infrastructure, and compliance with data-sovereignty goals.
This positions India as a major node in global AI infrastructure networks and deepens U.S.–India collaboration in emerging technologies.
Shri Ashwini Vaishnaw, Hon’ble IT Minister, Government of India: “I would like to thank Google for making this announcement of $15 billion dollars. This digital infrastructure will go a long way in meeting the goals of our India AI mission. I would also like to thank the Honorable Prime Minister for giving us this vision of using technology in every walk of life. I would like the industry to help re-skill and upskill our IT professionals in a major way, and thank Google for making this a major part of their agenda. AI services are emerging as a totally new category in our digital economy, and we look forward to this new facility being used for developing our youth for AI services.”
Shri N. Chandrababu Naidu, Hon’ble Chief Minister of Andhra Pradesh: “This significant investment in Andhra Pradesh marks a new chapter in India’s digital transformation journey. We are proud to host India’s first truly gigawatt-scale data center and Google’s first AI hub in India, which is a testament to our shared commitment to innovation, AI adoption, and long-term support for businesses and startups in the state.”
Thomas Kurian, CEO, Google Cloud: “The Google AI hub in Visakhapatnam represents a landmark investment in India’s digital future. By delivering industry-leading AI infrastructure at scale, we are enabling businesses to innovate faster and creating meaningful opportunities for inclusive growth. This partnership reflects our shared commitment to the Indian and U.S. governments to harness AI responsibly and drive transformative impact for society.”
Outlook & Next Steps
Over the coming months, the Andhra Pradesh and central governments are expected to finalize site boundaries, approvals, and infrastructure rollouts such as transmission lines, cable routes, and grid interconnections. The land for Google’s Visakhapatnam campus reportedly spans areas like Tarluvada, Adavivaram, and Rambilli.
The AI hub is poised to become a central spine in India’s cloud and AI ecosystem, linking domestic innovation with global networks. Its success will depend on agile governance, public-private coordination, and disciplined execution.
For India’s tech and startup community and particularly for the emerging innovation scene in Andhra Pradesh this marks a defining moment: world-class AI infrastructure coming to Indian shores, potentially transforming Visakhapatnam into South Asia’s next digital capital.
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