India’s Digital Leap: Google’s $10 Billion Investment to Build Asia’s Largest Data Center Cluster in Andhra Pradesh
Google is set to make its first and largest-ever direct investment in India’s digital infrastructure, committing $10 billion (approximately ₹88,730 crore) to establish a massive 1 Gigawatt (GW) data center cluster in the state of Andhra Pradesh. This ambitious project, located in the Visakhapatnam region, is slated to become the largest data center facility in Asia.
Nature and Strategic Location of the Project
The hyperscale data center cluster will be spread across three distinct campuses near Visakhapatnam: in Adavivaram and Tarluwada villages (Visakhapatnam district), and Rambilli village (Anakapalle district).
To support this colossal operation, the investment will fund critical digital infrastructure, including:
- The laying of three high-capacity submarine cables.
- The development of dedicated cable landing stations and extensive metro fiber networks.
The Andhra Pradesh government, led by Chief Minister N. Chandrababu Naidu (who signed an MoU with Google in December 2024), aims to position Visakhapatnam as a major global data hub, effectively doubling the submarine cable network capacity currently available in Mumbai. The State Investment Promotion Board (SIPB) has approved the proposal, with a formal agreement expected to be finalized around October 14.
Impact on India’s Digital Future
The Google data center cluster is projected to become fully operational by July 2028. More significantly, it will serve as the core of India’s first international AI Infrastructure Hub.
This monumental investment will provide a massive boost to the nation’s digital economy by:
- Accelerating advanced research and development activities in the country.
- Meeting the soaring demand for AI, cloud computing, and high-speed data processing.
- Positioning Vizag as a major global node for digital transformation, paving the way for it to be recognized as an “AI City.”
While Google has not yet issued an official statement, this move signals a major escalation of the global tech giant’s commitment to India, which is set to significantly enhance the country’s technological capabilities. (Google currently operates 29 data centers across 11 other countries globally).