The initiative will contribute an average of ₹10,518 crore annually to Andhra Pradesh’s GSDP between 2028 and 2032, supporting nearly 1.9 lakh jobs and generating productivity spillovers worth ₹47,720 crore over five years.
Published Oct 14, 2025 | 2:49 PM ⚊ Updated Oct 14, 2025 | 2:49 PM
Google signed an MoU with Andhra Pradesh in New Delhi on Tuesday.
Synopsis: The facility will host Google’s full AI stack, advancing artificial intelligence, cloud computing, and digital transformation across sectors in India. Designed with sustainability in mind, it will integrate renewable energy sources and link to Google’s global subsea and terrestrial networks.
Google will invest $15 billion over the next five years in India, the American multinational tech company said as it announced its plan to develop an Artificial Intelligence (AI) hub in Visakhapatnam.
The AI hub in Andhra Pradesh’s port city will be Google’s largest outside the United States.
The American multinational tech company signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to establish a 1 Gigawatt (GW) hyperscale data centre in Visakhapatnam, marking one of the largest foreign direct investments in the country’s tech sector.
The agreement, valued at nearly $10 billion (₹83,000 crore), was inked in New Delhi on Tuesday, 14 October, in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu and IT Minister Nara Lokesh, alongside Google Cloud CEO Thomas Kurien.
The event was attended by Union Ministers Nirmala Sitharaman and Ashwini Vaishnaw.
Sundar Pichai, the Chief Executive Officer of Alphabet and Google, said on Tuesday he shared his company’s plan for the Visakhapatnam AI hub with Prime Minister Narendra Modi.
Terming it a “landmark development,” Pichai said on X that the “hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure. Through it, we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country”.
Great to speak with India PM @narendramodi @OfficialINDIAai to share our plans for the first-ever Google AI hub in Visakhapatnam, a landmark development.
This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure.…
— Sundar Pichai (@sundarpichai) October 14, 2025
Hailing the development as a “landmark moment”, Chief Minister Naidu said, “It’s a very auspicious and happy day for Andhra Pradesh. I brought Microsoft to Hyderabad in the 1990s; today, I’m proud that Google is coming to Visakhapatnam. From Hitech City to AI City, we are witnessing an inspiring transformation.”
Expressing gratitude to Prime Minister Modi and Union Ministers for their support, Naidu lauded Google’s “creativity and speed” and credited Minister Lokesh’s efforts in driving the project to completion.
“He (Lokesh) worked closely with Google, visited their office, spent a lot of time, and updated me regularly. We aimed to complete this in 12 months; though it took 13, we made it happen,” Naidu said.
Lokesh described the partnership as “what the future will remember — our 1 GW Google Data Centre in Vizag, the first step toward AI City Vizag, India’s digital powerhouse.”
Calling it a historic milestone for both the state and the nation, he remarked: “Data is the new oil, and data centres are the new refineries. It’s not just about Andhra Pradesh playing a key role in India anymore — it’s about India playing a key role on the global landscape.”
A truly historic and auspicious day, marking one of the biggest technology milestones for Andhra Pradesh and India!
Today, Andhra Pradesh signed a landmark agreement with Google to set up a USD 15 billion, gigawatt-scale AI Data Centre in Visakhapatnam. This centre will be the… pic.twitter.com/quexyZmgil
— N Chandrababu Naidu (@ncbn) October 14, 2025
Lokesh emphasised that the government’s vision extends beyond infrastructure.
“Our priority is to skill up our youth, revamp the curriculum, and embrace AI to unlock the next wave of opportunities. The AI revolution will transform the next generation of cities, starting with Visakhapatnam,” he said, highlighting that education and IT are being merged “to ensure tangible outcomes on the ground.”
Google Cloud CEO Thomas Kurien said the company was “very pleased to announce a new gigawatt-scale AI hub in Visakhapatnam — the largest AI hub we are going to be investing in anywhere in the world outside of the United States.”
He revealed that the project represents “a capital investment of $15 billion over the next five years” and will scale to multiple gigawatts, forming part of Google’s global AI and data infrastructure spanning 12 countries.
Kurien further noted that the initiative will transform Visakhapatnam into a global digital connectivity hub.
“We are not just bringing AI technology, but also building digital infrastructure through our subsea cable and network connectivity hub,” he said, adding that Visakhapatnam will be a flagship node in Google’s global subsea network, strengthening India’s role in the global technology ecosystem.
In October 2024, my visit to Google HQ in the USA sparked a vision – bringing one of the world’s biggest tech giants to #AndhraPradesh for a game-changing investment. After a year of intense discussions and relentless effort, tomorrow we make history. @Google will sign an MOU… pic.twitter.com/gOnGtMPm9v
— Lokesh Nara (@naralokesh) October 13, 2025
The facility will host Google’s full AI stack, advancing artificial intelligence, cloud computing, and digital transformation across sectors in India. Designed with sustainability in mind, it will integrate renewable energy sources and link to Google’s global subsea and terrestrial networks.
According to official projections, the initiative will contribute an average of ₹10,518 crore annually to Andhra Pradesh’s GSDP between 2028 and 2032, supporting nearly 1.9 lakh jobs and generating productivity spillovers worth ₹47,720 crore over five years.
The project, which was recently cleared by the State Investment Promotion Board (SIPB), aligns with Andhra Pradesh’s thrust for rapid industrialisation and digital transformation. The state aims to scale its total data centre capacity to 6 GW within three years, positioning itself as a key player in India’s AI-driven digital economy.
(Edited by Majnu Babu).
