Google has announced plans to invest $15 billion over the next five years to build a major artificial intelligence data centre in Andhra Pradesh. The new campus, located in the port city of Visakhapatnam, will serve as the tech giant’s largest AI hub outside the United States and one of the biggest global investments in India’s technology infrastructure.
“This is the largest AI hub that we are going to be investing in anywhere in the world outside of the United States,” said Thomas Kurian, CEO of Google Cloud, at an event in New Delhi. “It is a part of a global network of AI centres in 12 different countries.”
The project will begin with a capacity of 1 gigawatt and is expected to scale up to “multiple gigawatts” in the coming years, Kurian added. Earlier, state officials had estimated the total investment at around $10 billion and projected that the development could create up to 188,000 jobs in the region.
The announcement comes amid a broader race among global tech giants to expand their AI computing infrastructure. Google’s parent company, Alphabet Inc, has committed approximately $85 billion this year alone to strengthen its data centre capabilities, reflecting the surging demand for advanced AI systems.
Microsoft and Amazon have also made major investments in data centres across India, which is now viewed as a critical market for AI-driven growth. Nearly a billion Indians access the internet, and platforms such as YouTube and Android already dominate the country’s digital ecosystem.
Local conglomerates, including Gautam Adani’s Adani Group and Mukesh Ambani’s Reliance Industries, have similarly announced large-scale data centre projects, recognising the vital role such facilities play in supporting India’s digital economy.
AI computing requires immense processing power and specialised infrastructure capable of linking thousands of chips in clusters. Google’s new facility is expected to enhance both domestic and global AI workloads while strengthening India’s position in the global data economy.
Despite its expansion, Google continues to face regulatory challenges in India, including multiple antitrust investigations into its business practices and an ongoing lawsuit from a Bollywood couple over its YouTube AI policy.
Still, the $15 billion commitment represents a strong vote of confidence in India’s potential to become a global AI powerhouse.