Asia's forefront, India's AI center's first investment! Google will invest $10 billion to build a 1GW data center

Silicon Valley giant Google is ramping up efforts to expand data center construction in Asia, marking an important first step for artificial intelligence (AI) infrastructure development in India.

According to Indian media reports, Google will sign an agreement with the government of Andhra Pradesh on Tuesday, the 14th local time, to invest nearly $10 billion in building a 1 gigawatt (GW) capacity hyperscale data center park in Visakhapatnam, the largest city in the state, creating India's first AI center—"AI City Vizag."

Indian officials stated that the park will become one of Google's largest data center projects in Asia. Google will deploy its complete AI technology stack to help accelerate India's AI-driven transformation. This is seen as the "largest single investment" since India's financial reforms and an important milestone in the country's digital infrastructure development.

Core Agreement Focuses on Gigawatt-Level Data Center

Indian media reported that the agreement between Google and Andhra Pradesh will outline the roadmap for India's first AI center, with the core focus on building a 1GW data center in Visakhapatnam. The facility will connect to Google's global network through reliable submarine and land systems and is designed to integrate clean energy.

The new AI center will integrate powerful AI infrastructure, data center capacity, new large-scale energy, and expanded fiber optic networks at a single location. Andhra Pradesh's Minister of Industry, Nara Lokesh, stated, "Andhra Pradesh will sign this future-defining agreement on Tuesday—our 1GW Google data center in Vizag, which is the first step in transforming AI City Vizag into India's digital powerhouse."

The project has received approval from the state's investment promotion committee, chaired by the Chief Minister of Andhra Pradesh, to streamline progress through single-window customs clearance, reliable utilities, renewable energy integration, and plug-and-play infrastructure.

Economic Impact Expected to Create Nearly 190,000 Jobs

Some media pointed out that Google's investment in Andhra Pradesh exceeds the $6 billion reported at the end of July this year, indicating that Google is accelerating its strategic deployment in India, a market with one of the fastest growth rates.

According to official assessments from Andhra Pradesh, the project is expected to contribute an average of ₹10.518 billion to the state's GDP annually from 2028 to 2032 and support approximately 188,220 jobs each year. Additionally, the productivity spillover effects driven by Google Cloud are expected to reach ₹9.553 billion annually, totaling ₹47.72 billion over five years.

This investment of approximately ₹87.52 billion (nearly $10 billion) is described by officials as the highest foreign direct investment ever in India's digital infrastructure sector.

The project brings a significant political victory to the newly elected Naidu government in Andhra Pradesh, supporting the local party, Telugu Desam Party, in its governance philosophy focused on high-value, technology-driven investments.

Strategic Significance Challenges Traditional Tech Hub Status

The project supports Andhra Pradesh's ambition to position Visakhapatnam as "AI City Vizag"—India's first AI center. By deploying Google's complete AI technology stack and connecting the facility to the global network through reliable submarine cables, Andhra Pradesh is positioning itself as a core participant in India's digital future This move directly challenges the dominance of traditional tech hubs such as Hyderabad and Bangalore. The project is a significant outcome of recent policy adjustments, including Andhra Pradesh Chief Minister Naidu's successful lobbying of the federal government to amend the national data center policy, providing tax breaks and other key incentives to attract global tech giants.

The agreement between Google and Andhra Pradesh will be signed in New Delhi, the capital of India, with the attendance of India's federal finance minister Nirmala Sitharaman, information and broadcasting minister Ashwini Vaishnaw, and Andhra Pradesh Chief Minister N Chandrababu Naidu.

Google's senior leadership, including Google Cloud CEO Thomas Kurian, Global Infrastructure Vice President Bikash Koley, and Google Cloud President for Asia Pacific Karan Bajwa, will represent the company at the signing ceremony