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Google will inject $15 billion to establish a cutting-edge data center complex serving as a core artificial intelligence (AI) hub in southern India, Google Cloud CEO Thomas Kurian revealed at an industry event on Tuesday.
The investment, slated to unfold over the next five years, solidifies Google’s commitment to India and marks its largest AI hub globally outside the U.S. The move underscores the increasing strategic importance of India in the global tech landscape.
While Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, initially pegged the 1-gigawatt project at $10 billion on Monday, Google’s official announcement significantly raises the stakes.
Lokesh acknowledged the deal on X, stating it followed “a year of intense discussions and relentless effort,” adding, “this is just the beginning.” This statement hints at further potential expansion and collaboration between Google and the Indian state.
Reports indicate Google’s Indian subsidiary, Raiden Infotech, will spearhead the development, constructing three campuses in Visakhapatnam. This geographic concentration suggests potential synergies and economies of scale to maximize the hub’s impact.
State officials are reportedly aiming to aggressively scale up Andhra Pradesh’s computing capacity in the next three years. This ambition aligns with the surging global demand for cloud services, propelled by the rapid adoption of AI technologies.
Google’s increased capital expenditure forecast for 2025, revealed during its second-quarter earnings, reflects this trend. The company now anticipates spending $85 billion, up from $75 billion, citing “strong and growing demand for our Cloud products and services.”
Beyond India, Google is also investing heavily in domestic infrastructure. The company recently announced a $25 billion investment in data centers and AI infrastructure across states within the PJM Interconnection, the largest electric grid in the U.S. This dual-pronged approach demonstrates Google’s global commitment to supporting the AI revolution.
India is rapidly emerging as a prime destination for multinational tech giants. Microsoft and AWS have also committed significant investments in the country’s cloud and AI infrastructure, signaling a broader trend toward leveraging India’s talent pool, growing digital economy, and strategic geographic location. This increased competition is likely to fuel further innovation and investment in the Indian tech sector.
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