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Wednesday, October 8, 2025

Google to Invest $10 Billion in Visakhapatnam Data Center: India's Largest Tech Project

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Google Plans Massive $10 Billion Data Center Investment in Visakhapatnam

In a groundbreaking development for India's digital infrastructure, tech giant Google is preparing to invest $10 billion (approximately Rs 88,730 crore) to establish its first data center cluster in India. The ambitious project, planned for Visakhapatnam, will feature a 1 GW capacity facility spread across three campuses, representing Google's largest-ever direct investment in the country's digital economy.

Strategic Locations Across Three Villages

The massive data center cluster will be strategically distributed across three locations near Visakhapatnam:

  • Adavivaram village in Visakhapatnam district
  • Tarluvada village in Visakhapatnam district
  • Rambilli village in Anakapalli district

These facilities are scheduled to become operational by July 2028, marking a significant milestone in India's journey toward becoming a global digital powerhouse.

Comprehensive Infrastructure Development

The project scope extends far beyond traditional data center construction. Google's investment will encompass the development of extensive supporting infrastructure essential for world-class data center operations:

  • Installation and landing of three high-capacity submarine cables
  • Dedicated cable landing stations for international connectivity
  • High-capacity metropolitan fiber optic lines
  • Advanced telecommunications infrastructure

This comprehensive approach will create a robust digital ecosystem capable of supporting cutting-edge computing and artificial intelligence applications.

Formal Agreement Expected Soon

Sources indicate that the investment agreement will be formalized between Google executives and Andhra Pradesh IT and Electronics Minister Nara Lokesh in New Delhi on October 14. The Andhra Pradesh State Investment Promotion Board, led by Chief Minister N Chandrababu Naidu, is expected to approve the investment proposal on Wednesday.

Asia's Largest Data Center Cluster

Once completed, the Visakhapatnam facility is expected to become Asia's largest data center cluster to date. This achievement will position India prominently on the global map of digital infrastructure, joining an elite group of countries hosting Google's data center operations.

Currently, Google and its subsidiaries operate data centers across 11 countries—including the United States, Taiwan, Japan, Singapore, Ireland, Netherlands, Denmark, Finland, Germany, Belgium, and Chile—spread across 29 sites worldwide. The Visakhapatnam project will mark Google's entry into the Indian data center market.

Strategic Partnership Takes Shape

The foundation for this massive investment was laid in December 2024, when Chief Minister Naidu signed a memorandum of understanding with Google within just six months of assuming office. This swift action demonstrates the state government's commitment to positioning Andhra Pradesh as a technology and innovation hub.

Google's Asia Pacific team conducted site visits to Visakhapatnam in May this year, with Minister Lokesh personally accompanying them to inspect various potential locations. This hands-on approach from state leadership helped accelerate the decision-making process.

Policy Framework Supporting Digital Growth

The project benefited from proactive policy initiatives by both state and central governments. Chief Minister Naidu had previously proposed amendments to the IT Act and Copyright Act to promote the development of data cities—specialized zones focused on digital infrastructure.

Following these proposals, the Indian government circulated a draft policy providing a comprehensive framework for data center development, creating an enabling environment for major investments like Google's Visakhapatnam project.

India's First International AI Infrastructure Hub

The data center cluster will form a crucial component of India's first international AI Infrastructure Hub—a large-scale digital infrastructure region developed within a concentrated geographical zone. This hub is designed to:

  • Deliver advanced digital capabilities to power Andhra Pradesh's and India's economy
  • Accelerate cutting-edge research and development in AI and related technologies
  • Create a concentrated ecosystem of digital innovation and entrepreneurship
  • Attract additional technology investments and talent to the region

Economic Impact and Job Creation

A project of this magnitude will generate substantial economic benefits for the region and the broader Indian economy. While specific employment figures haven't been disclosed, data center projects of this scale typically create:

  • Thousands of direct jobs during construction phase
  • Hundreds of high-skilled permanent positions for operations and maintenance
  • Significant indirect employment through supporting services and industries
  • Multiplier effects throughout the local economy

Strategic Significance for India

Google's decision to establish its first Indian data center cluster carries multiple strategic implications:

  • Digital Sovereignty: Enhanced local data processing capabilities support India's digital independence goals
  • Cloud Services: Improved latency and service quality for Indian users of Google Cloud and related services
  • Technology Transfer: Potential for knowledge sharing and skill development in data center operations
  • Investment Signal: Demonstrates India's attractiveness as a destination for major technology infrastructure investments

Competitive Landscape

Google's massive investment positions India as an increasingly important market for global technology infrastructure. Other major cloud service providers have also been expanding their Indian presence, but this $10 billion commitment represents one of the largest single investments in the sector.

The project will enhance competition in India's cloud services market while providing businesses and developers with additional options for hosting and computing resources.

Timeline and Next Steps

Key milestones for the project include:

  • October 2025: State Investment Promotion Board approval expected
  • October 14, 2025: Formal agreement signing anticipated
  • 2025-2028: Construction and infrastructure development phase
  • July 2028: Target date for operational commencement

Long-term Vision

This investment aligns with India's broader vision of becoming a global hub for digital innovation and artificial intelligence. The establishment of world-class data center infrastructure is essential for supporting emerging technologies, enabling research breakthroughs, and attracting further investments in the technology sector.

As India continues to digitize its economy and embrace artificial intelligence across sectors, projects like Google's Visakhapatnam data center cluster will provide the critical infrastructure foundation needed to support this transformation.

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