lipflip – Alphabet, Google’s parent company, has committed a substantial $15 billion (£11.29bn) investment to establish an AI data hub in Visakhapatnam. A major port city in Andhra Pradesh, India. This new facility will become one of the key components of Google’s global network of AI centers. Which already spans 12 countries. The investment will be spread across the next five years. Marking it as one of the largest AI ventures by Google outside the United States.
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Google Cloud’s CEO, Thomas Kurian, emphasized that this facility represents a major milestone for the company. “It’s the largest AI hub we are going to be investing in anywhere in the world. Outside of the United States,” Kurian said during a recent event in Delhi. The AI center will enhance Google’s ability to provide cutting-edge cloud and AI services to businesses and users in India. A market that is rapidly growing in terms of internet penetration and tech adoption.
The timing of this announcement is significant, especially as global tensions over domestic investments intensify. While the U.S. government, under President Donald Trump. Has urged companies to focus on investments within the U.S., India is increasingly becoming a key hub for data and AI infrastructure. Google’s decision to focus on India highlights the country’s growing role as a tech powerhouse.
Alphabet’s CEO, Sundar Pichai, expressed optimism about the new facility, stating, “This investment will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.” Google aims to leverage India’s rapidly expanding tech ecosystem to foster greater AI-driven innovation.
The Role of Andhra Pradesh in India’s Data Centre Growth
The Andhra Pradesh government is keen on fostering a thriving tech ecosystem. This AI data hub will align with the state’s broader plan to develop 6GW of data center capacity by 2029. The project will combine cloud and AI infrastructure with renewable energy systems, a fiber-optic network expansion, and other technological advancements. These upgrades are expected to contribute significantly to the state’s digital future and its global standing in the tech world.
Nara Lokesh, the state’s technology minister, called the project a “massive leap” for the region’s digital landscape. The government has been actively courting global investors by offering subsidized land and electricity, making Andhra Pradesh an attractive destination for technology companies.
Data centers like the one being built by Google play a crucial role in supporting digital economies. They house the servers, storage systems, and networking equipment necessary to process, store, and distribute vast amounts of data. With the expansion of the internet user base in India and a growing demand for cloud services, the country’s data center industry has seen impressive growth. According to JLL’s India Data Centre Market Dynamics report, India crossed the 1GW capacity mark in 2024, nearly tripling its capacity since 2019.
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India’s low data costs and expanding tech infrastructure have made it an increasingly attractive destination for tech giants. Google’s investment in Visakhapatnam will likely be a catalyst for more such ventures, accelerating India’s digital transformation. The project is not only about enhancing AI capabilities but also about creating new opportunities for businesses, users, and communities across India.
This AI hub marks the beginning of an era where India plays a more prominent role in the global tech landscape, benefiting from innovation, growth, and technological advancements that have the potential to reshape the digital future.