Google’s $10 Billion Bet: Why Andhra Pradesh Could Soon Host Asia’s Largest Data Centre Cluster

In what could be one of the biggest technology infrastructure projects in India’s history, Alphabet-owned Google is reportedly gearing up to invest a staggering $10 billion (around INR 88,774 crore) to build a massive 1 GW data centre cluster in Visakhapatnam, Andhra Pradesh.

If all goes as planned, this mega project — spread across three large campuses — will not only transform Visakhapatnam into a high-tech digital hub but also reinforce India’s position as a key player in the global AI and cloud ecosystem.

A Data Powerhouse in the Making

According to reports, Google’s upcoming cluster will be a cutting-edge facility complete with high-capacity submarine cables, dedicated cable landing stations, and extensive metro fibre and telecom networks. The infrastructure is being designed to handle enormous volumes of data — the kind needed to power today’s generative AI models, global streaming platforms, and next-generation cloud services.

Sources suggest that the first phase of the project will go live by July 2028, and once operational, it will stand as a core pillar in India’s digital infrastructure — enabling faster data processing, reduced latency, and improved access to cloud and AI capabilities across Asia.

Andhra Pradesh’s IT Minister Nara Lokesh is expected to seal the deal with Google’s top executives on October 14, marking a major milestone for both the state and India’s tech roadmap. The State Investment Promotion Board, chaired by Chief Minister N. Chandrababu Naidu, is also set to approve the project today, as per reports.

If approved, this will officially make the Visakhapatnam data centre cluster the largest in Asia — a testament to India’s growing ambition to lead the AI and cloud revolution.

The Bigger Vision: Turning Andhra into a Digital Powerhouse

The Andhra Pradesh government has been aggressively pushing to make the state a data and technology hub. It has already set its sights on building 6 GW of data centre capacity over the next five years.

In fact, earlier this year, reports emerged that Alphabet was planning a $6 billion investment for a 1 GW data centre and supporting power infrastructure in the state. That move seems to have evolved into this even larger $10 billion vision.

IT Minister Lokesh had hinted at this in July when he told to the media, “We’ve made certain announcements like Sify (550 MW data centre to be built in the state), which are public… There are certain announcements which are not yet public. In October, we will make those announcements.”

It now seems October is indeed the month of those “unpublic” announcements — with Google’s name leading the pack.

Why Data Centres Are the New Oil Fields

Behind this billion-dollar momentum is a simple truth: data has become the new oil, and data centres are the refineries of this era.

India, already home to one of the world’s largest smartphone user bases, is now witnessing an explosive rise in digital consumption and AI adoption. From streaming and fintech to generative AI tools and autonomous systems, every sector demands higher data processing power and faster connectivity.

According to industry estimates, India’s data centre market is projected to grow from $4.5 billion in 2023 to $9.3 billion by 2027, and further to over $11.6 billion by 2032. This unprecedented surge has drawn attention from global tech giants who see India as a critical node in the future of AI and cloud computing.

The AI and Cloud Gold Rush

Google isn’t the only player eyeing this digital gold rush.

• Reliance is already building a large-scale data centre in Jamnagar.

• OpenAI, the company behind ChatGPT, is reportedly exploring plans to establish a 1 GW capacity data centre in India as part of its “Stargate” initiative in Asia — a move expected to accelerate once Sam Altman visits India.

Together, these developments indicate that India’s next big tech transformation might not be in consumer apps or payments — but in the invisible infrastructure that powers everything digital.

A Boost for India’s AI and Startup Ecosystem

For India’s rapidly growing startup ecosystem, this is nothing short of revolutionary.
Data centres are the backbone of the digital economy — providing the cloud, storage, and computational power startups need to build and scale AI-driven innovations.

With Google’s planned investment, startups could soon access more affordable, high-performance cloud infrastructure right within India, reducing latency and operational costs. This could particularly benefit sectors like fintech, healthtech, agritech, edtech, and AI research, which rely heavily on large data processing.

Moreover, a project of this scale could create thousands of direct and indirect jobs, attract global cloud providers, and spur the development of ancillary industries such as renewable energy, construction, and telecommunications.

For Andhra Pradesh, this marks a strategic turning point. Once known primarily for its ports and agriculture, Visakhapatnam could now emerge as India’s Silicon Coast — blending its natural coastal advantage with world-class digital infrastructure.

If Google’s plans materialize as envisioned, Andhra Pradesh won’t just be hosting data — it will be hosting the future.