In a move set to reshape the technological landscape of India and deepen ties between two global giants, Google has announced its largest-ever investment in the country: a staggering $15 billion to build a state-of-the-art artificial intelligence (AI) and data center hub in Visakhapatnam, Andhra Pradesh. This ambitious project, unveiled on October 15, 2025, will roll out over five years, from 2026 to 2030, and marks the tech titan’s biggest AI infrastructure commitment outside the United States, according to The Indian Express and The Times of India.
The AI hub, designed with gigawatt-scale compute capacity, will be a cornerstone of Google’s global network of AI centers, which now spans 12 countries. Unlike traditional data centers that rely on CPU-powered servers for routine tasks like website hosting and cloud storage, this new facility will be tailored specifically for AI applications, employing cutting-edge hardware such as GPUs and Google’s own Tensor Processing Units (TPUs). These technologies are essential for powering advanced AI tasks—think deep learning, neural network training, and generative AI, which underpin services like Search, YouTube, and Gmail.
Google CEO Sundar Pichai described the initiative as a “landmark development” in a post on X, highlighting its transformative potential: “This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure. Through it, we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.” Pichai also spoke directly with Indian Prime Minister Narendra Modi to discuss the investment’s far-reaching implications.
Prime Minister Modi, in turn, lauded the announcement, stating, “Delighted by the launch of the Google AI Hub in Visakhapatnam… It will be 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!” (Times of India).
The hub is being developed through partnerships with AdaniConneX—a joint venture between Adani Enterprises and EdgeConneX—and Bharti Airtel. AdaniConneX will provide green energy services, aiming to run the facility entirely on clean energy, while Airtel will assist in establishing a new international subsea gateway. This gateway, featuring multiple international subsea cables landing in Visakhapatnam, will connect to Google’s vast two-million-mile terrestrial and subsea cable network, enhancing global connectivity and providing route diversity to complement existing landings in Mumbai and Chennai (Indian Express).
Gautam Adani, Chairman of the Adani Group, emphasized the scale and ambition of the project, stating, “This facility will house the TPU and GPU-based compute power required for deep learning, neural network training, and large-scale AI model inference and create an ecosystem that accelerates AI-driven solutions for India’s most critical sectors—from healthcare and agriculture to logistics and finance.”
According to an analysis by Access Partnership, commissioned by Google, the AI hub is projected to generate at least $15 billion in American gross domestic product (GDP) from 2026 to 2030. This boost is expected to come from increased cloud and AI adoption, as well as the involvement of American talent and resources in developing and operating the hub. As Google noted in a blog post, “This initiative creates substantial economic and societal opportunities for both India and the United States—while pioneering a generational shift in AI capability.”
India’s IT Minister Ashwini Vaishnaw welcomed the investment, underscoring the need for re-skilling and upskilling the nation’s IT workforce to meet the demands of the AI-driven future. “I would like the industry to help re-skill and upskill our IT professionals in a major way, and thank Google for making this a major part of their agenda. AI services are emerging as a totally new category in our digital economy, and we look forward to this new facility being used for developing our youth for AI services,” Vaishnaw remarked.
The economic ripple effects are expected to be significant. Andhra Pradesh Chief Minister N Chandrababu Naidu stated that the data center could create between 20,000 and 30,000 total jobs in the state, including 5,000 to 6,000 direct positions. In a broader sense, some estimates—including those cited by Indian Express—suggest the data center could indirectly support up to 188,000 jobs, factoring in supply chains and ancillary services. Naidu called the investment “a new chapter in the country’s digital transformation journey,” and expressed pride in hosting India’s first gigawatt-scale data center and Google’s first AI hub in the country.
India’s data center market is booming, currently valued at $10 billion, with $1.2 billion in revenue generated during FY24, and projections by real estate firm JLL suggesting an additional 795 MW of capacity will be added by 2027, bringing the total to 1.8 GW. The arrival of Google’s AI hub is expected to further fuel this growth, positioning Visakhapatnam as a regional—and potentially global—AI powerhouse.
But such rapid expansion isn’t without its challenges. AI data centers are notoriously energy-intensive. The International Energy Agency (IEA) warns that data center power usage could double by 2026, raising concerns about sustainability and the feasibility of achieving net-zero or carbon-negative goals by 2030. Indeed, power consumption and related infrastructure costs account for a significant portion of both capital and operating expenses—CareEdge Ratings notes that 40% of capital expenditure for such facilities is dedicated to electrical systems, and 65% of operating costs are due to electricity consumption. Building just one megawatt of data center capacity in India costs between Rs 60-70 crore.
To address these challenges, Google and its partners are betting big on clean energy. The project includes co-investment in new transmission lines, renewable energy generation, and innovative energy storage systems in Andhra Pradesh. While renewables remain the first choice, their intermittent nature has prompted policymakers to consider nuclear energy as a reliable, round-the-clock power source—especially critical as grid demands soar with AI adoption. As Indian Express reported, the Indian government is open to exploring nuclear options, mirroring trends already underway in the United States.
The AI hub will also benefit from the technological prowess of Google’s R&D centers in Bengaluru, Hyderabad, and Pune, which will contribute to the design and development of essential software and hardware innovations. The facility’s robust infrastructure will not only serve India but also support the wider region, cementing Visakhapatnam’s status as a vital AI and connectivity hub for Asia and beyond.
Despite the fanfare, Alphabet’s stock, which had gained about 30% so far in 2025, experienced a modest dip—falling about 1% in early premarket trading following the announcement, according to Stocktwits. Still, retail sentiment toward the company’s Class A shares remained bullish, reflecting optimism about the long-term impact of the investment.
As India and the United States navigate ongoing trade negotiations and tariff tensions, Google’s $15 billion commitment stands as a testament to the enduring potential of cross-border collaboration in the digital age. With the Visakhapatnam AI hub, both nations are betting on a future where innovation, connectivity, and sustainability go hand in hand.
