Tech giant Google is preparing to make its largest infrastructure investment in India yet, with plans to build a 1 gigawatt (GW) data centre in Visakhapatnam, Andhra Pradesh. The total investment is expected to exceed ₹52,000 crore, including a major push towards green energy integration.
Massive Data and Energy Commitments
According to reports, $6 billion will be allocated to develop the project, of which nearly $2 billion (about ₹17,500 crore) will be used specifically to build renewable energy capacity to power the data centre. The facility will join Google’s growing global cloud infrastructure, adding to existing Indian cloud regions in Mumbai and Delhi.
This comes as India’s total data centre capacity, as of April 2025, reached 1.2 GW. Mumbai accounts for the lion’s share (41%), followed by Delhi-NCR and Chennai. The coastal advantage of Vizag makes it an ideal site, offering submarine cable connectivity for high-speed data transfer and global integration.
Strategic Timing Amid Policy and Trade Shifts
The announcement coincides with rising global interest in India as a data hub, particularly as the country prepares to implement its new data protection law. The policy encourages data localisation, making in-country storage and processing critical for global players.
On the same day, the U.S. government imposed a 25% tariff on Indian goods, raising questions about the broader business climate. Nevertheless, Google reaffirmed its India commitment, also announcing that its Gemini 2.5 Flash AI model will now be locally processed, further boosting India’s AI and cloud ecosystem.
Andhra Pradesh’s Growing Tech Ambitions
State IT Minister Nara Lokesh revealed that Andhra Pradesh has already secured 1.6 GW of data centre investment capacity, a sharp increase from previous figures. If cleared, Google will join other major players like Microsoft and AWS in establishing hyperscale data infrastructure in India.
This strategic investment not only supports Google’s global ambitions but also positions Andhra Pradesh as a rising digital infrastructure hub.
