On October 14, 2025, Google set the tech world abuzz with the announcement of a colossal $15 billion investment to establish its first artificial intelligence (AI) hub in India. The new facility, to be constructed in the port city of Visakhapatnam, Andhra Pradesh, is slated to become one of Google’s largest AI centers globally—second only to its U.S. operations. The move signals not just a strategic bet on India’s digital future, but also a pivotal moment in U.S.–India technological cooperation, as both nations look to cement their roles in the rapidly evolving AI landscape.
Google’s commitment, which will roll out over five years from 2026 to 2030, is more than just a splashy headline. The planned hub is designed to combine gigawatt-scale data center operations, high-capacity energy infrastructure, and an expanded fiber-optic network. According to the company, it will also feature a new international subsea gateway that connects Visakhapatnam directly to Google’s sprawling global network of over two million miles of terrestrial and subsea cables. This promises to transform the city into a digital connectivity powerhouse—not just for India, but for the entire Asian region and beyond.
At the Bharat AI Shakti event in New Delhi, where the announcement was made, Google Cloud CEO Thomas Kurian described the project as “the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States.” He explained, “By delivering industry-leading AI infrastructure at scale, we are enabling businesses to innovate faster and creating meaningful opportunities for inclusive growth.” Kurian also emphasized that the Visakhapatnam hub would be scaled to “multiple gigawatts” over time, and would serve as a landing station for a large number of cables, providing a digital backbone connecting different parts of India together.
The AI hub will offer a full stack of solutions, including Google’s custom Tensor Processing Units (TPUs) for local AI processing. It will also provide access to advanced AI models such as Gemini, and support consumer services like Google Search, YouTube, Gmail, and Google Ads. This infrastructure is expected to help Indian businesses and organizations build and scale their own AI-powered solutions, accelerate research and development, and ultimately secure India’s position as a global leader in artificial intelligence.
Google’s investment comes at a time of shifting tides in India’s technology sector. While the Indian government has recently encouraged the use of “swadeshi” (made in India) products and promoted local alternatives to U.S. tech giants, the sheer scale of Google’s commitment has been welcomed by national leaders. Indian Prime Minister Narendra Modi, who spoke with Google CEO Sundar Pichai about the plans, called the investment “a powerful force in democratizing technology. It will also ensure AI for all, delivering cutting-edge tools to our citizens, boosting our digital economy and securing India’s place as a global technology leader.”
For Andhra Pradesh, the implications are particularly significant. Chief Minister N. Chandrababu Naidu, a key political figure in the region, hailed the project as “a new chapter in India’s digital transformation journey.” The state’s technology minister, Nara Lokesh, added, “It is a massive leap for our state’s digital future, innovation, and global standing.” Andhra Pradesh has been proactive in attracting global tech firms by offering subsidized land and electricity, and aims to develop 6 gigawatts of data center capacity by 2029—a goal this Google project will help advance considerably.
Partnerships are central to the hub’s development. Google has teamed up with AdaniConneX, an Adani Group-backed venture, to build the data center infrastructure, and with telecom provider Bharti Airtel to develop the cable landing station. These collaborations are expected to deliver not just technological muscle, but also new transmission lines, clean energy generation, and energy storage systems in Andhra Pradesh. Google’s focus on renewable energy and sustainability echoes its global commitment to energy-efficient operations, and aligns with India’s broader clean energy ambitions.
Government officials have voiced robust support for the initiative. Indian IT minister Ashwini Vaishnaw expressed gratitude, stating, “I would like to thank Google for making this announcement of $15 billion dollars. This digital infrastructure will go a long way in meeting the goals of our India AI mission.” He further urged Google to consider India’s Andaman Islands as a future hub for global internet data transfer, citing congestion in Singapore and the need for improved connectivity in India’s northeastern states. Vaishnaw also highlighted the importance of re-skilling IT professionals, noting that AI services are emerging as a new category in the digital economy.
According to research commissioned by Google and conducted by Access Partnership, the AI hub could generate at least $15 billion in U.S. gross domestic product over the five-year period, thanks to new economic activity related to AI and cloud technologies. The initiative is thus positioned as a win-win for both India and the United States, pioneering what Google calls “a generational shift in AI capability.”
This $15 billion investment is not Google’s first foray into India. It follows a previous $10 billion commitment made in 2020, and builds on the company’s 21-year presence in the country, where it currently employs 14,000 people. The new hub joins Google’s network of AI data centers across 12 countries, and will benefit from technology developed at the company’s R&D centers in Bengaluru, Hyderabad, and Pune.
Despite the enthusiasm, the broader political context is not without its tensions. The Indian government’s push for technological self-reliance and the promotion of domestic alternatives to Google and other U.S. giants have created a competitive landscape. Local firms such as Zoho Corporation and MapMyIndia have been promoted as homegrown alternatives to Google Cloud and Google Maps, respectively. While these moves have had limited impact so far, they signal a clear intent to foster indigenous innovation and reduce reliance on foreign technology providers.
Still, the consensus among policymakers and industry leaders is that Google’s investment will serve as a catalyst for India’s digital transformation. It is expected to accelerate the adoption of AI-driven services, expand the clean energy portfolio, and create new economic opportunities for both nations. As Sundar Pichai put it, “Through it (the hub), we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.”
With the formal agreement now signed and construction set to begin, all eyes will be on Visakhapatnam as it transforms into a global hub for artificial intelligence and digital connectivity. The ripple effects of this landmark investment are likely to be felt far beyond the city’s borders—reshaping India’s digital landscape and anchoring the next phase of U.S.–India tech cooperation in the AI era.
