Google to Pour ₹88,730 Crore into Visakhapatnam Data Centre Cluster – India's Largest Digital Infrastructure Bet

In a development that could reshape India's digital infrastructure landscape, sources have revealed that Google is preparing to invest approximately $10 billion, equivalent to ₹88,730 crore, in establishing a massive 1 GW data centre cluster in Visakhapatnam, Andhra Pradesh. This marks the tech giant's first direct hyperscale data centre investment in India and is being touted as potentially the largest data infrastructure initiative across Asia.

Landmark Digital Infrastructure Push for India's Tech Economy

According to individuals familiar with the matter, the ambitious investment plan is scheduled for formal discussion and potential finalization on October 14 in New Delhi. The meeting will bring together senior officials from Google and Andhra Pradesh's Minister for IT and Electronics, Nara Lokesh, to solidify the arrangement.

The project, which has already been backed by a Memorandum of Understanding signed in December 2024, is expected to receive official approval from the State Investment Promotion Board. The board, which is chaired by Chief Minister N. Chandrababu Naidu, is set to convene on Wednesday to deliberate on the proposal.

Massive Scale and Strategic Location Selection

The proposed data centre cluster will comprise three hyperscale campuses strategically positioned across Visakhapatnam and Anakapalli districts. The facilities will be established in Adavivaram village and Tarluvada village in Visakhapatnam district, along with Rambilli village in Anakapalli district. The total capacity is expected to reach 1 GW, or 1,000 MW, making it one of the most powerful computing infrastructure hubs in the region.

Sources indicate that the sites were selected following a comprehensive inspection conducted in May 2025, when Google's Asia-Pacific team toured the proposed locations. The inspection was personally facilitated by Minister Lokesh, who showcased the infrastructure readiness and strategic advantages of the region.

Infrastructure Blueprint Includes Advanced Connectivity

The development plan encompasses far more than just data centre buildings. Reports suggest that the infrastructure will include the construction of three hyperscale data centre campuses, the landing of three high-capacity submarine cables, dedicated cable landing stations, high-capacity metro fiber lines, and advanced telecommunications and power infrastructure. This comprehensive approach is designed to ensure seamless global connectivity and reliable operations.

The facilities are expected to become operational by July 2028, according to the proposed timeline, positioning India as a critical node in Google's global data infrastructure network. This development could significantly impact real estate markets in Andhra Pradesh, particularly in areas surrounding Visakhapatnam and nearby cities.

Historic Investment in Context of Google's Global Footprint

If the investment proceeds as planned, it will represent a significant milestone in multiple dimensions. The project would mark Google's first hyperscale data centre investment on Indian soil, the largest such cluster the company has developed in Asia to date, and one of the most substantial private-sector technology infrastructure investments in Indian history.

Currently, Google and its subsidiaries maintain data centre operations across 29 global sites spanning 11 countries, including the United States, Japan, Singapore, Ireland, the Netherlands, and Chile. The addition of the Visakhapatnam cluster would expand Google's global footprint and signal a strategic realignment toward positioning India as a regional artificial intelligence and data hub, similar to emerging investment capitals in other regions.

Anchoring India's First International AI Infrastructure Hub

Beyond the immediate infrastructure, the data centre cluster is intended to serve as the anchor for India's first international AI Infrastructure Hub. This high-density zone of advanced digital infrastructure is being designed to support artificial intelligence, big data, and advanced computing applications.

The hub is envisioned to enable India-based innovation across multiple technological domains, including AI development, cloud services, cybersecurity, and high-performance computing. State officials anticipate that the project will fuel digital economies at the state level, with particular focus on Andhra Pradesh, while accelerating research, development, and enterprise solutions at a global scale.

Policy Reforms Paving the Way for Tech Giants

The ambitious project comes on the heels of significant policy reforms championed by Chief Minister Naidu and Minister Lokesh to attract global technology players. The state government has proposed amendments to the IT Act and Copyright Act specifically to support the development of "data cities," a concept designed to create dedicated zones for digital infrastructure.

These reforms have been aligned with the Government of India's draft national policy on data centres, which aims to offer a unified regulatory framework for such investments. Andhra Pradesh has been pitched as a preferred destination for digital infrastructure, backed by strong political will and comprehensive state-level facilitation, much like how RERA regulations in Andhra Pradesh have streamlined real estate development.

Timeline and Expected Economic Impact

The formal agreement is anticipated to be signed during the October 14 meeting, following which construction is expected to commence in phases. Industry observers suggest that once operational in 2028, the facility will offer scalable computing capacity that could attract global enterprises seeking robust data infrastructure in the region.

The investment is expected to create thousands of direct and indirect jobs, stimulate ancillary industries, and position India as a strategic digital powerhouse in the Asia-Pacific region. The ripple effects on local economies, particularly in terms of real estate development, infrastructure upgrades, and skilled employment, are anticipated to be substantial, reminiscent of how industrialization has transformed other real estate markets.

Investment Details at a Glance

Positioning Andhra Pradesh in the Global Digital Race

With this investment, Google is joining a growing roster of global technology giants placing substantial bets on India's digital transformation. The development positions Andhra Pradesh as a serious contender in the global AI and cloud infrastructure competition, alongside established hubs in Singapore, Tokyo, and other major cities.

The initiative also reflects broader trends in the Indian market, where major infrastructure investments are becoming increasingly common. The convergence of policy support, strategic location, and robust infrastructure is creating new opportunities for both technology companies and real estate developers.

As the October 14 meeting approaches, stakeholders across the technology and real estate sectors are closely watching the developments. If finalized, this investment could serve as a catalyst for further technology investments in India, potentially triggering a wave of similar projects across other states. The project's success could also influence how other states structure their own digital infrastructure policies and incentives, much like how commercial real estate development has evolved in other major metros.

Disclaimer: This news article is based on reported information from various sources and represents developments as understood at the time of writing. The details regarding Google's investment plans, timelines, and project specifications are subject to official confirmation and may change. Readers are advised to verify information independently and consult official sources for the most current and accurate details. This article is intended for informational purposes only and should not be construed as investment advice or an official announcement from Google or the Andhra Pradesh government.