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Google to Invest $10 bn in Andhra Pradesh for Massive AI and Data Centre Hub

Alphabet Inc’s Google will invest $10 billion to build a large-scale data centre and artificial intelligence (AI) hub in Andhra Pradesh, marking its biggest-ever investment in India, according to state officials.

Google Gemini 2.0 AI tool
Google Gemini 2.0 AI tool

The tech giant plans to establish a 1-gigawatt data centre campus in Visakhapatnam, integrating advanced AI infrastructure, renewable energy sources, and an expanded fibre-optic network, Reuters news report said. The initiative is part of Google’s strategy to boost its data capacity and support the rapid adoption of AI-driven services across India and Asia.

A formal agreement between Google and the Andhra Pradesh government is expected to be signed on Tuesday.

State IT Minister Nara Lokesh said the investment highlights India’s growing role in global technology infrastructure. “In an era where data is the new oil, such initiatives will serve as a strategic advantage,” he said.

The move comes as global tech companies race to expand their AI and cloud data infrastructure to meet surging demand for generative AI applications, cloud computing, and digital services.

The Visakhapatnam project positions Andhra Pradesh as a major hub in India’s emerging AI and data ecosystem, creating opportunities for digital innovation, energy investments, and skilled employment.

Other major investments

Google has committed $25 billion over two years to expand data centre and AI infrastructure across the PJM interconnection, the huge electric grid region covering parts of the mid-Atlantic, Midwest, and South in the U.S. As part of this, the company is also investing in hydroelectric power — signing a deal with Brookfield Asset Management to modernize two hydropower plants in Pennsylvania and secure long-term access to clean power to support its growing energy demands.

In Belgium, Google is investing €5 billion (about US$5.8 billion) to broadly expand its AI and data centre footprint. The investment will include enhancements to its existing Saint-Ghislain data centre site and development of a new campus in Farciennes, creating hundreds of jobs and reinforcing its commitment to develop large scale, carbon‐free energy powered compute in Europe.

In Malaysia, Google has announced a US$2 billion investment to build its first data centre and Google Cloud hub in the state of Selangor. The initiative is meant to meet rising demand for cloud services and AI, drive economic growth, and provide AI literacy/training support. This expandability also reflects Malaysia’s “Cloud First Policy.”

Google is also backing clean energy projects: It invested over US$800 million in a funding round for Intersect Power, a clean energy company. The plan is to develop industrial parks that couple new data centre capacity with co-located renewable energy generation, to ensure stable power supply and reduce reliance on strained grids.

Additionally, Google reaffirmed a very large commitment — US$75 billion expected in 2025 — to expand its infrastructure broadly: data centres, servers, AI compute capacity, and full-stack innovation. This reflects its strategy to keep up with exponential growth in demand for AI models, cloud computing, search, and storage services.

Rajani Baburajan

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