Tech giant Google is set to make a landmark investment in India by building a massive 1-gigawatt data centre in Visakhapatnam, Andhra Pradesh. With a total investment of $6 billion, this project will mark Google's largest data centre investment in Asia and is a key part of Alphabet’s broader regional expansion strategy.
According to government sources, Google’s upcoming facility in Andhra Pradesh will be the biggest in terms of both capacity and investment size in all of Asia. The $6 billion outlay includes a significant $2 billion allocation for renewable energy infrastructure, which will help power the upcoming data hub in Visakhapatnam.
This marks the Alphabet-owned company’s first major data centre project in India, adding strategic importance to the southern port city and boosting the local economy.
The Visakhapatnam data centre is part of Google's broader plan to expand its data centre footprint across Asia, with projects already underway or planned in Singapore, Malaysia, and Thailand.
In April, Alphabet had reaffirmed its $75 billion global commitment to expanding data centre capacity despite global economic uncertainties, including tariff-related pressures from the United States.
A standout feature of the Visakhapatnam data centre is its green energy focus. Of the total investment, $2 billion will go towards renewable energy development, underscoring Google’s push for sustainable and clean technology. The company plans to use this renewable capacity to fully power the data centre, aligning with its long-term climate goals.
While reports of the investment have surfaced through government sources, Alphabet has not yet officially confirmed the project. Andhra Pradesh’s IT Minister Nara Lokesh, currently on an investment tour in Singapore, declined to comment on Google’s role but hinted at several upcoming announcements in October.
Lokesh did reference a separate 550 MW data centre investment by Sify Technologies, suggesting Andhra Pradesh’s growing momentum in the tech infrastructure space.
The southern Indian state, still recovering from its 2014 bifurcation that led to the creation of Telangana and loss of Hyderabad, is now betting big on data infrastructure.
Minister Lokesh revealed that Andhra Pradesh has already secured 1.6 GW in data centre investments, with plans to scale up to 6 GW over the next five years. This capacity is significantly higher than India’s current operational capacity of 1.4 GW, according to data from real estate consultancy Anarock.
The state is also looking to establish three undersea cable landing stations in Visakhapatnam to provide high-speed connectivity to data centres. These stations will act as hubs for global data transmission, offering Andhra Pradesh a competitive edge over existing digital hubs like Mumbai.
“We aim to build a cable network twice the size of Mumbai’s current capacity,” said Lokesh, emphasizing the state’s strategic focus on connectivity.
Powering such massive infrastructure requires robust energy planning. Lokesh estimates the data centre industry will demand up to 10 GW of power over the next five years. A major portion will be sourced from renewable energy, though some coal-based power will also be used to ensure reliability and round-the-clock operation.
“The majority will actually be green energy, and that’s the unique value proposition we offer,” he stated.
Conclusion: A Game-Changer for India's Tech Infrastructure
Google’s proposed $6 billion data centre investment has the potential to transform Andhra Pradesh into a global tech hub, boost the local economy, and put India firmly on the global data map. With strong government support, focus on sustainability, and infrastructure scaling up, the region is well-positioned to attract more such mega-tech investments in the coming years.