Google to invest USD 10 billion in Visakhapatnam, set to build Asia’s largest data centre cluster

Google is planning to establish its largest data centre outside the United States in Visakhapatnam, marking a landmark development in India’s digital infrastructure. The tech giant is set to invest USD 10 billion (approximately Rs 88,730 crore) to create a one-gigawatt data centre cluster in the city.

The Andhra Pradesh Government, through the State Investment Promotion Board (SIPB) chaired by Chief Minister Chandrababu Naidu, officially approved the project, calling it one of the largest foreign direct investment commitments in India’s digital infrastructure sector.

According to independent assessments by Access Partnership (2025) and Google’s economic modeling, the project is expected to contribute around Rs 10,518 crore annually to the state’s GSDP in its first five years of operation (2028-2032). It is also projected to generate nearly 1,88,220 direct and indirect jobs each year across construction, data centre operations, engineering, IT, and supply chain sectors. Beyond direct operations, Google Cloud’s wider productivity impact is expected to add Rs 9,553 crore annually through digital enablement, totaling Rs 47,720 crore over five years. At the national level, similar digital infrastructure hubs could potentially unlock USD 2.1 trillion in value addition and support 10 million jobs by 2047.

The SIPB has highlighted the project as transformative for Andhra Pradesh’s IT ecosystem, approving the branding of Visakhapatnam as “AI City Vizag.” The initiative aims to anchor a global hub for AI, cloud computing, and data analytics, aligning with the Digital India, IndiaAI Mission, and Make in India programs.

Andhra Pradesh offers single-window clearances, reliable power and water supply, renewable energy integration, and plug-and-play industrial infrastructure, coordinated by the Economic Development Board and the Department of IT, Electronics & Communications, ensuring operational stability for hyperscale projects.

The data centre is expected to serve as a catalyst for AI, cloud computing, IoT, 5G, and e-governance platforms while driving growth in ancillary sectors such as power, fiber optics, telecommunications, real estate, and infrastructure. It will also boost state revenues through SGST, electricity duties, and property taxes. The state plans to develop an Emerging Technologies Cluster around the facility to attract AI and cloud enterprises, positioning Vizag as India’s AI capital and a global node for digital transformation.

Speaking at the announcement, Chief Minister Chandrababu Naidu said, “This is not just an investment; it’s a vision being realized. Hosting one of the world’s largest technology investments demonstrates Andhra Pradesh’s governance strength, policy stability, and our people’s capability. The Google Data Centre in Vizag will anchor our journey toward becoming the AI capital of India and a global hub for digital innovation.”