Google has announced a major $15 billion investment plan to build a new data centre hub dedicated to artificial intelligence (AI) development in southern India. The project, which will be located in the state of Andhra Pradesh, is expected to become Google’s largest AI hub outside the United States.
Google Cloud Chief Executive Officer, Thomas Kurian, made the announcement during a technology event on Tuesday, describing the plan as a major step in expanding the company’s global infrastructure and commitment to digital transformation in Asia.
According to Kurian, the investment will be spread over the next five years and is aimed at boosting data processing, AI innovation, and digital cloud capacity in India and across Asia. “This will be Google’s largest AI hub outside the U.S., reflecting our long-term confidence in India’s technological ecosystem,” Kurian stated.
A day before the official announcement, the Minister for Human Resources Development in Andhra Pradesh, Nara Lokesh, estimated the 1-gigawatt data centre project at about $10 billion. He said the state government had worked closely with Google’s local subsidiary to secure the investment, which he described as a “landmark moment” for the region’s technology sector.
In a post on social media platform X (formerly Twitter), Lokesh said the deal followed “a year of intense discussions and relentless effort,” noting that it “is just the beginning” of a larger partnership between the Indian government and Google.
Reports by the Economic Times indicate that the investment will be channelled through Google’s Indian subsidiary, Raiden Infotech. The company is expected to develop three major campuses across the coastal city of Visakhapatnam, also known as Vizag. These facilities will focus on advanced computing, cloud storage, and AI-driven services.
Additional reports on Tuesday revealed that Andhra Pradesh officials plan to increase their focus on attracting high-tech investments, with plans to expand the state’s computing power and data storage capacity over the next three years. Officials believe the project will position the region as a global hub for AI, cloud computing, and digital infrastructure.
Experts say the move is part of a global race among technology giants to expand their data and cloud infrastructure in response to growing demand for AI-based services. Across the world, companies such as Microsoft, Amazon Web Services (AWS), and Meta are investing heavily in data centres and digital networks to handle the massive computing power needed to train and run AI models.
As part of its second-quarter earnings report released in July, Google increased its capital expenditure forecast for 2025 from $75 billion to $85 billion. The rise was attributed to “strong and growing demand for our Cloud products and services,” according to the company.
In the same month, Google also revealed plans to spend $25 billion over the next two years building new data centres and AI infrastructure in several U.S. states connected to the country’s largest electricity grid.
Industry analysts note that India has emerged as a major destination for global tech investment due to its large pool of skilled talent, growing internet economy, and supportive government policies. Companies like Microsoft and Amazon Web Services have already launched major cloud regions in the country, while Indian tech firms such as Infosys and Wipro are expanding their AI research operations.
Observers believe Google’s new AI hub could create thousands of direct and indirect jobs, support India’s digital economy, and encourage further investments from other global players. The project is also expected to improve the availability of cloud computing services for businesses and startups across South Asia.
By setting up one of the world’s largest AI data centre clusters in Visakhapatnam, Google is positioning itself at the heart of the next wave of global technological innovation. The investment also reflects India’s growing importance as a digital powerhouse capable of supporting the world’s next generation of AI-driven applications.
