Google (a unit of Alphabet Inc.) has announced a landmark $10 billion investment to build a 1-gigawatt data centre campus and AI hub in Visakhapatnam, Andhra Pradesh. The massive project is set to integrate advanced AI infrastructure, large-scale energy systems, and a robust fibre-optic network, making it one of Google’s largest bets globally.

The Andhra Pradesh government expects the deal to cement Visakhapatnam as a leading digital and AI hub.  IT Minister Nara Lokesh emphasized that this will be Google’s largest investment in India to date. 

To support the project, authorities have assured tax clarity and that there will be no retrospective levies on the data centre’s operations. The state also plans to build a separate power grid dedicated to these data centres, with Google funding the infrastructure and the state offering partial subsidies. 

Challenges remain: land acquisition has encountered legal hurdles, with objections filed in court by individuals claiming farmer interests.  Despite that, the government is pushing to expedite clearances, promising fair compensation and stakeholder safeguards. 

This mega-investment not only signals Google’s deepening commitment to India’s AI ambitions, but also underlines the strategic importance of digital infrastructure in shaping the next phase of economic growth.