Google’s $15 Billion Bet on India: Visakhapatnam to Host Nation’s Largest AI Hub

In a defining moment for India’s technological future, Google has announced a monumental $15 billion (₹80,000 crore) investment to establish its largest AI hub outside the United States in Visakhapatnam, Andhra Pradesh. The project, unveiled during the ‘Bharat AI Shakti’ event in New Delhi, marks a transformative leap in India’s ambition to emerge as a global leader in Artificial Intelligence and digital infrastructure.

This isn’t just another data centre — it’s the birth of “AI City Vizag”, a gigawatt-scale project designed to redefine how India builds, uses, and powers AI.

Set to be anchored by a 1 GW hyperscale data centre campus, the Visakhapatnam project is more than an infrastructure investment — it’s a vision in motion. The campus will integrate clean energy systems, cutting-edge cloud infrastructure, and advanced AI-driven innovation labs, making it a technological powerhouse on the global map.

The initiative is expected to create up to 1.8 lakh jobs across technology, infrastructure, and allied sectors — a number that could reshape employment landscapes in Andhra Pradesh and beyond.

“This gigawatt-scale AI hub will house data locally and help power AI-driven solutions across sectors,” said Thomas Kurian, CEO of Google Cloud. “It reflects Google’s long-term commitment to India’s digital growth and our ambition to build sustainable, locally integrated data infrastructure.”

For India’s AI ecosystem, this announcement is nothing short of a paradigm shift.

A Vision Aligned with ‘Viksit Bharat 2047’

The announcement was met with thunderous applause and national pride, as government leaders hailed the investment as a turning point in India’s journey toward becoming a digitally self-reliant nation.

Andhra Pradesh Chief Minister N. Chandrababu Naidu, who has long been credited with ushering in the IT revolution in Hyderabad, described the development as a continuation of that legacy.

“Prime Minister Modi was clear that Google has to come to India for this,” Naidu said. “We brought Microsoft to Hyderabad earlier, and today, Google is coming to Visakhapatnam. With this, we can achieve the vision of Viksit Bharat 2047 using AI.”

Union Minister for Electronics and IT, Ashwini Vaishnaw, called the investment a milestone under India’s AI Mission, emphasizing its transformative role in building skills, digital infrastructure, and a new economic category — AI services.

“This $15 billion investment is not just about infrastructure—it’s a catalyst,” Vaishnaw said. “It will create a skilled workforce, build new opportunities in AI services, and accelerate India’s readiness for the AI age.”

Three Pillars for India’s AI Future

Minister Vaishnaw outlined three key areas where Google’s partnership will strengthen India’s AI foundation:

1. AI Skilling at Scale

AI is reshaping every aspect of life and work. Vaishnaw urged Google to take a leadership role in upskilling and reskilling India’s vast IT workforce, ensuring they’re prepared for the AI-driven economy.

“We need AI skilling at a totally different scale and pace,” he said. “Please make it a major part of your entire agenda here.”

2. Expanding Global Data Connectivity

Vaishnaw also proposed leveraging the Andaman & Nicobar Islands as a strategic hub for undersea cable networks, creating new digital corridors linking India with Southeast Asia and Australia. A proposed Vizag–Sittwe (Myanmar) subsea cable route could further boost connectivity across India’s Northeast, enhancing accessibility for remote regions.

3. Building AI as a New Economic Category

Calling AI-driven services the “next big economic pillar”, the Minister stressed collaboration between government and industry to create jobs and foster innovation.

“These AI facilities must not only power innovation but also nurture the next generation of digital talent,” Vaishnaw said.

Finance Minister Nirmala Sitharaman, in a fireside chat at the event, described the project as an embodiment of India’s “policy synergy and governance vision” under Prime Minister Modi.

“Projects like this showcase India’s readiness to lead the next wave of technological transformation,” Sitharaman said. “The visionary policies of Prime Minister Narendra Modi have positioned India as a digital fountainhead. India will now lead not only in AI but also in quantum technologies.”

Andhra Pradesh: The New Epicentre of Digital India

For Andhra Pradesh, this project is both a triumph and a statement. Nara Lokesh, the state’s Minister for IT, Electronics, and Communications, called it a symbol of India’s collective technological rise.

“What you see today is India at its best,” Lokesh said. “This is not just Andhra Pradesh’s moment—it’s India’s moment—to play a key role in the global AI landscape.”

The partnership between Google and the Andhra Pradesh government reaffirms the state’s reputation as an innovation-driven region and sets the stage for sustainable technology-led growth.

The Transformative Ripple Effect

The AI City Vizag initiative is poised to deliver far-reaching impact:

• 1 GW of clean, AI-ready data infrastructure

• 1.8 lakh direct and indirect jobs

• Boost to AI research, education, and digital entrepreneurship

• Integration with the India AI Mission’s Common Compute Facility

• Contribution to India’s AI compute capacity through Google’s TPUs, enhancing competitiveness with GPU-led ecosystems like Nvidia’s

In essence, the Visakhapatnam AI hub will serve as the nucleus of India’s AI revolution—a place where compute infrastructure meets innovation, and global ambition meets local talent.

As India marches toward its Viksit Bharat 2047 vision, Google’s investment in Visakhapatnam stands as a defining chapter in the country’s digital evolution. It reflects a powerful collaboration between the Centre, the State, and global industry leaders, united by a common goal: to make India not just a participant, but a pioneer in the age of artificial intelligence.

The story of AI City Vizag isn’t just about technology—it’s about vision, empowerment, and the belief that India’s intelligence, innovation, and inclusion will power the world’s next big leap.