In a bold move signaling India’s rising prominence in global tech infrastructure, Google isset to invest $6 billion to construct a data centre in Andhra Pradesh’s coastal hub, Visakhapatnam. This marks the company’s first major venture into India’s data infrastructure and is poised to become one of the largest and most significant data centre deployments in Asia.
A Gigawatt-Scale Infrastructure
The centerpiece of the project is a 1-gigawatt data centre, which includes substantial power infrastructure development. Notably, $2 billion of the total investment is earmarked exclusively for renewable energy capacity to operate the facility. This underscores Google’s commitment to sustainable operations, even as it scales up its digital footprint.
Strategic Location: Visakhapatnam
Google’s choice of Visakhapatnam is no coincidence. The coastal city offers robust infrastructure, ideal connectivity options, and proximity to subsea cable landing stations critical for global data transmission. Andhra Pradesh is also planning to set up three new cable landing stations, aiming to double Mumbai’s cable network capacity.
Scaling Data Centre Capacity in Andhra Pradesh
Since its split from Telangana in 2014, Andhra Pradesh has aggressively pursued tech investments to boost its economy. The state government has already secured commitments for 1.6 GW of data centre projects slated to be operational within two years. The goal now is to scale up to 6 GW in the next five years pulling the region ahead of India’s current national capacity of roughly 1.4 GW.
A Sustainable Approach to Power
Addressing one of the most critical aspects of data centre development power consumption Andhra Pradesh aims to provide up to 10 GW of electricity over five years, blending green energy with conventional sources to ensure reliability. Google’s front-loaded $2 billion for renewables, likely including solar and wind, brings a unique eco-friendly edge to the project.
Regional Expansion in Asia
This isn’t an isolated investment. Google’s parent company, Alphabet, is pursuing an aggressive expansion of data centre capacity across Asia-Pacific, including facilities in Singapore, Malaysia, and Thailand. The Visakhapatnam project will likely become the largest by scale in the region.
Global Commitment Amid Economic Uncertainty
Despite headwinds like global tariff tensions, Alphabet reasserted its intent earlier in 2025 to invest $75 billion in building data centre capacity worldwide. The India project aligns squarely with this ambitious infrastructure spending trajectory.
Why This Investment Matters
- India’s Digital Boom: India’s digital ecosystem is expanding rapidly. However, the nation’s data centre capacity remains under-penetrated relative to data generation and consumption. Google’s entry could redefine the scale and reliability of data infrastructure in the region.
- Sustainability Trend: Tech giants are increasingly prioritizing sustainability. Google’s investment in renewable-backed power for such a large-scale data centre sends a strong signal that green infrastructure is a corporate imperative.
- Regional Connectivity: The development of subsea cable landing stations aligns with India’s ambitions to become a regional digital hub, boosting resilience and reducing latency for global data flows.
- Economic Catalyst: Beyond infrastructure, the project is a major economic milestone. Andhra Pradesh stands to gain in terms of jobs, local tech ecosystem development, and global visibility as an investment destination.
Challenges and Considerations
- Regulatory Approvals: Construction can only commence once necessary clearances are in place. Government statements suggest formal announcements might arrive in October.
- Balancing Power Sources: While green energy is a priority, maintaining high reliability may necessitate conventional energy backups balancing sustainability with uptime remains vital.
- Competitive Response: With Google entering the fray, other cloud and hyperscale players like AWS, Microsoft, and local giants may accelerate their own India-focused data centre plans.
- Capacity vs. Deployment Pace: Securing 6 GW of future capacity is one thing; operationalizing it efficiently will be key to meeting digital demand.
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