In a significant leap towards bolstering its global AI infrastructure, Google has announced a monumental $15 billion investment to establish a massive AI and data center hub in Visakhapatnam, Andhra Pradesh. This ambitious project, revealed during an event in New Delhi by Google Cloud CEO Thomas Kurian, is set to unfold over the next five years and represents Google’s largest infrastructure investment in India to date.
Following this announcement, shares of Alphabet Inc. (GOOG) saw an uptick, rising to $246.35, a 0.70% increase during early trading hours. The new facility will initially house a 1-gigawatt data center with plans for expansion to multi-gigawatt capacity, reflecting Alphabet’s commitment to scaling its international AI infrastructure amid growing global demand.
Kurian highlighted that the Visakhapatnam hub is poised to become Google’s primary AI investment site outside the United States. He emphasized its strategic importance in creating a robust digital backbone across India and the broader Asia-Pacific region.
Strengthening Regional Connectivity
The AI and data hub will feature a cable landing station, developed in partnership with Bharti Airtel and AdaniConneX. These collaborations are expected to enhance regional connectivity and support AI services across various sectors. Furthermore, Google plans to introduce subsea internet cables to further strengthen the digital infrastructure.
This facility will underpin Google’s core services, including Search, Gmail, YouTube, Ads, and enterprise solutions, while also providing access to advanced technologies such as Tensor Processing Units (TPUs) and Gemini models. This initiative aligns seamlessly with India’s growing ambitions in AI and its rapidly expanding digital economy.
The project has received enthusiastic support from state and national leaders, with Andhra Pradesh Minister Nara Lokesh acknowledging the extensive negotiations that have led to this milestone. The Indian IT Ministry has also proposed future expansions to regions such as the Andaman Islands, signaling a commitment to further enhancing the country’s digital capabilities.
India’s Ascendancy in Cloud Infrastructure
As India positions itself as a central hub for digital services, it continues to attract global tech giants, driven by projections of over 900 million internet users by the end of the year. This burgeoning demand for advanced computing resources has also prompted significant investments from industry heavyweights like Microsoft and AWS.
In light of this momentum, Alphabet has increased its 2025 capital expenditure forecast to $85 billion, up from $75 billion, with a focus on expanding AI and cloud capacities both domestically and internationally. The Visakhapatnam hub is a pivotal element of this global expansion strategy.
Despite ongoing political discussions regarding reducing reliance on foreign technology, Google maintains a robust presence in India, having operated in the region for over two decades and employing approximately 14,000 people. With this new infrastructure investment, Alphabet is solidifying its leadership position in emerging AI markets.
This announcement positions Google not only as a leader in the AI field but also as a catalyst for India’s digital transformation, paving the way for a future where technology continues to shape the global landscape.
