Andhra Pradesh has officially approved Google’s nearly USD 10 billion hyperscale data centre in Visakhapatnam (Vizag), marking one of India’s largest-ever digital infrastructure foreign direct investments (FDI).
The State Investment Promotion Board (SIPB), led by Chief Minister Chandrababu Naidu, cleared the proposal. This move positions Vizag as more than a tech hub — it aspires to become “AI City Vizag”, a global node for AI, cloud computing, and data analytics.
Based on independent analyses by Access Partnership and Google’s internal modeling, the project is projected to contribute an average of ₹10,518 crore per year to Andhra Pradesh’s Gross State Domestic Product (GSDP) between 2028 and 2032.
Over that same period, the project is expected to generate around 1,88,220 jobs annually across multiple sectors — from construction and engineering to cloud operations, IT, and supply chain activities.
Beyond direct operations, Google Cloud’s productivity-led effects could add ₹9,553 crore annually, summing to nearly ₹47,720 crore over five years, through enabling digital transformation across industries.
At the national level, similar digital infrastructure projects could unlock up to USD 2.1 trillion in value addition and support 10 million jobs by 2047 under comparable models.
During the SIPB meeting, the state formally adopted the “AI City Vizag” branding. The idea is to anchor a global hub for AI, cloud, and data analytics, aligning with India’s broader tech goals like Digital India and the India AI Mission. The New Indian Express+1
Government sources emphasize that the project’s green signal reflects investor confidence in Andhra Pradesh’s governance and infrastructure readiness. Key enablers include:
Single-window clearances
Plug-and-play industrial parks
Integration of renewable energy
Coordination via Economic Development Board (EDB) and ITE&C department
Additionally, the data centre will anchor growth in adjacent sectors: fibre optics, telecom, real estate, power, and supportive infrastructure upgrades.
A dedicated Emerging Technologies Cluster is also planned to attract related AI and cloud firms around the data centre precinct.
A Google subsidiary (Raiden Infotech) is proposing a 1-gigawatt data centre cluster in Vizag, spread across multiple campus locations. The plan involves phased construction, with operations beginning around 2028, subject to approvals and infrastructure setup.
Earlier reports had suggested an initial commitment of USD 2 billion for renewable energy infrastructure to support the data centre. Given India’s push for green data centres, power sourcing will be critical to sustainability and long-term viability.
Despite approval, land acquisition is facing legal challenges. The state has earmarked nearly 200 acres near Tarluvada, Anandapuram for the project. However, court petitions filed by claimants (some controversially in the names of deceased individuals) are delaying progress.
Compensation packages have been revised, with proposals of ₹50 lakh per acre, inclusive of jobs, shops, and housing plots for affected landowners. Chief Minister Naidu has personally intervened and directed officials to resolve disputes.
Google’s approval for a USD 10 billion hyperscale data centre in Vizag is a milestone for India’s digital infrastructure trajectory. The project not only promises significant economic dividends — both in GSDP contribution and job creation — but also places Andhra Pradesh and Vizag at the heart of India’s AI and cloud ambitions.
However, the road to execution is complex: ensuring sustainable energy supply, resolving land disputes, coordinating multiple stakeholders, and scaling associated infrastructure will demand relentless focus and governance discipline.
If these challenges are navigated successfully, Vizag could emerge as a global AI and cloud hub, inspiring similar projects across India and transforming the technology landscape for decades to come.