Google Announces $15 Billion AI Hub in Visakhapatnam

In a landmark announcement on October 14, Google revealed a $15 billion investment to establish a large-scale artificial intelligence (AI) hub in Visakhapatnam, Andhra Pradesh, marking its biggest investment in India and outside the US so far. The new facility is set to transform Visakhapatnam into a major center for AI innovation, infrastructure, and digital growth.

The investment will span five years, from 2026 to 2030, and is projected to generate over 1 lakh jobs, according to civil aviation minister N. Ram Mohan Naidu. The AI hub is expected to play a crucial role in strengthening India’s technology landscape and Indo-US digital cooperation.

First Gigawatt-Scale Data Center Campus in India

The Visakhapatnam facility will be India’s first gigawatt-scale data center campus, integrating advanced AI infrastructure, data centers, renewable energy capacity, and a new subsea gateway. Google highlighted that the hub will host high-performance computing resources used in popular products such as Search, YouTube, and Workspace.

Data centers are increasingly vital as AI models, cloud services, and digital platforms demand massive computing power and low-latency connectivity. Companies like Google are investing heavily to localize infrastructure, enhance resilience, and support real-time AI processing needs.

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Strategic Partnerships and International Connectivity

The AI hub will be developed in partnership with AdaniConneX and Airtel, enabling robust digital connectivity across India. Additionally, Google plans to construct new international subsea cables landing in Visakhapatnam, improving internet resilience and complementing existing gateways in Mumbai and Chennai.

During the announcement event in New Delhi, Union IT Minister Ashwini Vaishnaw, Finance Minister Nirmala Sitharaman, Andhra Pradesh CM N. Chandrababu Naidu, state IT Minister Nara Lokesh, and Google Cloud CEO Thomas Kurian were present. Vaishnaw emphasized that the hub aligns with the goals of India’s AI Mission and suggested leveraging the Andaman Islands as a hub for undersea internet cables.

Vaishnaw also requested Google to create a cable link from Visakhapatnam to Myanmar to better serve India’s northeastern states, including Mizoram.

A Boost to India’s Digital Transformation

AP CM N. Chandrababu Naidu described Google’s investment as “a new chapter in India’s digital transformation journey”, stating that the AI hub and subsea cable gateway would make Visakhapatnam a global AI and connectivity hub.

According to an analysis by Access Partnership, commissioned by Google, the project is expected to generate around $15 billion in US GDP between 2026 and 2030 through new economic activity tied to AI and cloud services.

Focus on Innovation and Sustainable Growth

Beyond infrastructure, the hub will serve as a testbed for AI research and innovation, benefiting startups, enterprises, and research organizations across India. To meet the substantial energy needs of the data center, Google plans to collaborate with local partners to expand clean energy generation, transmission, and storage capacity, reinforcing its commitment to sustainable growth.

This ambitious project positions Visakhapatnam as a leading destination for AI development in India and underscores Google’s long-term commitment to the country’s digital economy.

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