Google to invest $10 billion in Visakhapatnam data center cluster

Google is set to build its largest data center outside the United States in Visakhapatnam, Andhra Pradesh, with an investment of USD 10 billion (approximately ₹88,730 crore). The project represents one of the biggest foreign direct investments in India’s digital infrastructure sector and marks a key milestone in the country’s growing role as a global technology hub.

According to an official release by the Andhra Pradesh government, the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu, approved the establishment of the hyperscale data center cluster. The facility, with a one-gigawatt capacity, will be developed by Google to enhance cloud and AI capabilities across the region. Independent assessments by Access Partnership and Google’s economic modeling suggest the project could contribute an average of ₹10,518 crore annually to the state’s GSDP between 2028 and 2032, while supporting around 1.88 lakh direct and indirect jobs each year. The initiative also includes the creation of an “AI City Vizag” brand, aiming to position the region as a hub for AI, cloud computing, and data analytics aligned with India’s Digital India and Make in India programs.

Reactions to the announcement have been largely positive, with state officials calling it a transformative investment for Andhra Pradesh’s economy and IT ecosystem. Chief Minister Naidu described it as “a vision being realized,” emphasizing the state’s commitment to becoming India’s AI capital. Experts note that the project could significantly boost local industries such as power, fiber optics, and real estate, while also strengthening India’s overall digital capacity. The government plans to coordinate closely with Google to ensure timely execution and sustainability, projecting that Visakhapatnam could emerge as a major global node in digital transformation over the coming decade.