Google Invests $10B in Data Centers to Power India’s AI Boom by 2028
Alphabet's Google has dropped a $10B giant of an investment to build a 1-gigawatt data centre in Visakhapatnam down in southern India.
Quick overview
- Google has announced a $10 billion investment to build a 1-gigawatt data center in Visakhapatnam, India, marking the region as a new global data hub.
- The project will consist of three campuses and is expected to begin construction in mid-2028, aligning with Andhra Pradesh's goal of achieving 6 gigawatts of data capacity by 2029.
- The data center will enhance India's digital resilience through advanced underwater cables and metro fiber networks, connecting the southern coast to global data highways.
- India's data center market is projected to reach $100 billion by 2027, with significant investments from major companies like Amazon and AWS.
Alphabet’s Google has dropped a $10B giant of an investment to build a 1-gigawatt data centre in Visakhapatnam down in southern India. The project is a big deal – it’s going to cover three separate campuses in Adavivaram, Tarluvada and Rambilli, basically marking the region as a brand new global data hub. Things are scheduled to get underway in mid-2028, which ties in pretty well with Andhra Pradesh’s ambitions of hitting 6 gigawatts of data capacity by 2029.
State IT Minister Nara Lokesh is loving the initiative calling it a total game-changer. He reckons its impact can be felt in many more ways than just the jobs it creates: “It’s not just about jobs – it’s about the whole ecosystem it puts in place.”
Andhra Pradesh to lead India’s AI transformation with Google’s $10B investment in Visakhapatnam’s AI Hub. #YoungestStateHighestInvestment #GoogleComesToAP #InvestInAP pic.twitter.com/qDJBLHW5ZX
— Egg Puff Reddy (@EggPuffJagan) October 14, 2025
Underwater Cables and Global Connectivity
The Visakhapatnam project is going to tie into some seriously cutting-edge underwater cables and metro fibre networks, giving India’s southern coast a direct link to the major global data highways. Google’s putting their money into a new company called Raiden Infotech India Ltd, which is their local arm, and they’re also going to set up three underwater cable landing stations – this should seriously boost India’s digital resilience.
- 3 Underground cables will make a real difference to cross-border connectivity
- Currently there are already 29 Google data centers up and running around the world
- Visakhapatnam is going to be the biggest Asian data cluster
Andhra Pradesh Chief Minister Chandrababu Naidu has also had a say on the matter – he reckons this is a “game-changer” and goes against India’s largest foreign investment since the country began opening up to the rest of the world.
In Dec 2024 Google and the state government got their ducks in a row by signing a MOU between them, this gave them a clear plan as to how to get the necessary regulations and buildings put in place. The data cluster will also tie in with India’s first ever International AI Infrastructure Hub – this is a major plan to get digital frameworks in place to drive innovation in the industry.
Google announces a $10B investment in Visakhapatnam to build a gigawatt-scale AI hub its largest outside the US.
Vizag to become Google’s 3rd international connectivity hub, hosting local data infrastructure & full-stack AI systems.https://t.co/Ubrhow4EU5
— IndUS Tech Council (@IndUSTechTank) October 14, 2025
The Data Centre War in India is Heating Up
India’s data centre market is going to be worth a cool $100 billion by 2027, thanks to cloud computing, AI and the digital economy all going from strength to strength. And then along comes Amazon, they’ve basically said they’re going to chuck $233 million into India by 2025, and this comes on top of their plan to spend $26 billion in India by 2030. Meanwhile, AWS has also said they’re going to put in $12.9 billion by 2030.
PM Narendra Modi has got a pretty clear vision for what he wants from all this – he sees it as a way to drive real economic change, but India still has some pretty big obstacles to overcome – not least water shortages and energy troubles. But one thing that Andhra Pradesh does get right is its business-friendly policies – so it’s no real shock that the likes of Google and Amazon are keen to get in on the action.
As Lokesh put it, “We’re ready to adapt policies at every level to make Andhra Pradesh a true tech trailblazer.”
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