Google to Invest $15 Billion in AI Data Hub in India Boosting Tech Innovation
Alphabet, Google’s parent company, has announced a significant investment of $15 billion to establish an AI data hub in Visakhapatnam, a port city in Andhra Pradesh, India. This facility will be a key part of Google’s AI operations, contributing to its global network of AI centers across 12 countries.
Investment Details and Impact
Thomas Kurian, the CEO of Google Cloud, stated that this will be the largest AI hub outside the United States. The investment is planned over the next five years, aligning with India’s growing importance as a destination for AI data centers.
- Investment Amount: $15 billion
- Location: Visakhapatnam, Andhra Pradesh
- Duration: Five years
Significance for India’s Tech Landscape
India’s low data costs and rapidly expanding internet user base have made it a focal point for cloud services and AI development. Sundar Pichai, CEO of Alphabet, highlighted that the new AI hub will accelerate technological innovation in India, benefiting enterprises and users alike.
The Andhra Pradesh government is set to formalize agreements regarding the project. Nara Lokesh, the state’s technology minister, remarked that this investment represents a substantial advancement for the region’s digital future and its global position in technology.
Infrastructure and Future Plans
The upcoming facility aims to integrate AI with cloud computing while leveraging renewable energy sources and enhancing the existing fiber-optic network. This initiative is part of a broad state plan to achieve a data center capacity of 6GW by 2029.
Context of Growth in India
India’s data center sector has experienced exponential growth. According to JLL’s India Data Centre Market Dynamics report, the industry surpassed 1GW of capacity in 2024, nearly tripling its 2019 figures.
- Projected Data Center Capacity by 2029: 6GW
- Capacity Surpassed in 2024: 1GW
The Andhra Pradesh government continues to attract international investors by providing subsidized land and electricity, fostering a conducive environment for growth.
