Google is set to invest USD 10 billion (INR 88,730 crore) to establish a data center cluster with 1 GW capacity in Visakhapatnam, marking the global technology giant's first such investment in India. The facility is expected to represent the largest-ever direct investment by Google and its subsidiaries in India's digital economy.

Project Scale and Location

The data center cluster will comprise three campuses located near Visakhapatnam at Adavivaram village and Tarluvada village, both in Visakhapatnam district, and Rambilli village in Anakapalli district. These facilities are expected to be operational by July 2028. The Visakhapatnam data center cluster is expected to be Asia's largest to date. The construction of the data center cluster will require the installation and landing of three high-capacity submarine cables, dedicated cable landing stations, and high-capacity metro fiber lines, along with telecommunications infrastructure.

The project is designed to deliver substantial digital infrastructure capabilities through resilient, high-bandwidth connectivity enabled by the submarine cable systems.

Government Coordination and Approval Process

The contours of the agreement are likely to be formalized between Google's leadership and Andhra Pradesh IT and electronics minister Nara Lokesh in New Delhi on October 14. The Andhra Pradesh State Investment Promotion Board, headed by Chief Minister N Chandrababu Naidu, is expected to approve the investment proposal on Wednesday. Naidu had signed a memorandum of understanding with Google in December 2024, within six months of assuming power.

Google's Asia Pacific team flew to Visakhapatnam in May this year, and Lokesh personally took them to inspect various sites offered in the state. Google had laid down specific requirements for the growth of data infrastructure during these discussions.

Policy Framework and Infrastructure Development

Naidu had proposed amendments in the IT Act and Copyright Act to promote data cities, as first reported in the May 26 edition coverage. Subsequently, the Indian government circulated a draft policy providing a comprehensive framework for data centers. The data center cluster will become part of India's first international AI Infrastructure Hub, described as a large digital infrastructure region developed within a concentrated geographical zone.

This hub is positioned to deliver leading digital capabilities to power Andhra Pradesh's and India's economy and accelerate advanced research and development.

Global Context and Strategic Positioning

Google and its subsidiaries currently operate data centers in 11 countries: the US, Taiwan, Japan, Singapore, Ireland, Netherlands, Denmark, Finland, Germany, Belgium, and Chile, spread across 29 sites. The Visakhapatnam facility will mark Google's entry into the Indian data center market. The initiative is being coordinated in close consultation with Andhra Pradesh's IT and electronics ministry and is scheduled for approval by the State Investment Promotion Board.

The arrival of this data center is expected to catalyze advanced research, cloud capabilities, and robust digital services in the region. The project directly aligns with Google's broader mission to invest in advanced digital infrastructure in high-growth markets worldwide. Google did not respond to email queries regarding the investment plans.

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