Google taps Visakhapatnam for $10 billion, 1GW data centre cluster
The deal, which marks Google’s first such investment in the country, is expected to be finalized on October 14. Key Google executives are scheduled to meet with Andhra Pradesh IT and electronics minister Nara Lokesh in New Delhi to iron out the remaining details.
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Google is on the verge of its largest-ever direct investment in India's digital economy, planning to inject $10 billion to establish a colossal 1-gigawatt (GW) data centre cluster in Visakhapatnam, according to reports.
The deal, which marks Google’s first such investment in the country, is expected to be finalized on October 14. Key Google executives are scheduled to meet with Andhra Pradesh IT and electronics minister Nara Lokesh in New Delhi to iron out the remaining details, as per reports.
The sprawling facility will comprise three separate data centre campuses located in Adavivaram and Tarluvada villages within the Visakhapatnam district, and Rambilli village in the neighboring Anakapalli district. These campuses are slated to become operational by July 2028.
Crucially, the construction will involve extensive digital infrastructure work, including the installation of three high-capacity submarine cables, the setting up of dedicated cable landing stations, and high-capacity metro fibre lines. This cluster is positioned to form the core of India’s first international AI infrastructure hub, creating a massive, geographically concentrated digital region.
The Andhra Pradesh State Investment Promotion Board, chaired by Chief Minister N Chandrababu Naidu, is expected to clear the massive investment proposal as early as Wednesday. Naidu’s proactive stance, which included proposing amendments to the Information Technology and Copyright Acts to encourage "data cities," paved the way for the central government to circulate a draft policy framework for data centres.
Google's move comes as major technology firms continue to drive unprecedented demand in the Indian market. Amazon, Microsoft, and Google currently account for roughly 30% of the nation’s data centre demand, a figure projected to climb to 35%, according to Anarock Capital.
The entire Indian data centre industry is bracing for a massive surge, with expected investments ranging from ₹1.6 trillion to ₹2.0 trillion over the next five to seven years. While companies have announced plans to add 7.1 GW of fresh capacity, nearly 60% of that remains in the early stages, underscoring the significance and scale of Google's impending hyperscaler investment.
