Google to Invest $15 Billion in New AI Hub in Southern India
Google will invest $15 billion over the next five years to establish a major data center and artificial intelligence hub in southern India, the company announced today.
The investment, revealed by Google Cloud CEO Thomas Kurian at an event, will make the new facility Google’s largest AI hub globally outside of the United States. The project, located in Visakhapatnam, is expected to require 1 gigawatt of power. Yesterday, Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, initially estimated the project’s value at $10 billion, describing the deal as the result of “a year of intense discussions and relentless effort,” and stating it “is just the beginning.”
The expansion of data center capacity comes as demand for cloud services and AI technologies surges worldwide, requiring significant infrastructure investment from tech companies. Google previously increased its capital expenditure forecast for 2025 to $85 billion, citing “strong and growing demand for our Cloud products and services.” This investment in India reflects a broader trend of companies seeking to capitalize on the growing AI market and the availability of skilled tech talent in the region – a trend also seen with investments from companies like Amazon Web Services and Microsoft.
State officials are planning to continue attracting similar projects and significantly increase computing capacity over the next three years. This development is expected to boost India’s position as a key player in the global AI landscape and contribute to its growing digital economy.
Officials stated that they anticipate further developments and scaling of the project in the coming months.
Prakash Singh | AFP | Getty Images
Google will invest $15 billion to build data center capacity for a new artificial intelligence hub in southern India, Google Cloud CEO Thomas Kurian announced at an event Tuesday.
The investment will roll out over the next five years, and will be Google’s largest AI hub in the world outside of the U.S, Kurian added.
Earlier on Monday, the Minister for Human Resources Development of the Indian state of Andhra Pradesh, Nara Lokesh, put the 1-gigawatt project at $10 billion.
The deal comes after “a year of intense discussions and relentless effort,” and “is just the beginning,” Lokesh said in a post on the social media platform X.
The Indian outlet Economic Times previously reported that the investment would be made by Google’s Indian subsidiary Raiden Infotech, which plans to develop three campuses across the city of Visakhapatnam.
According to another report from ET on Tuesday, state officials planned to continue doubling down on such projects and to significantly scale up the state’s computing capacity over the next three years.
Companies are amping up investments in infrastructure to keep pace with surging global demand for cloud services as AI services become increasingly popular.
As part of its second-quarter earnings in July, Google increased its forecast for capital expenditures in 2025 to $85 billion, up from $75 billion in February, due to “strong and growing demand for our Cloud products and services.”
That same month, the company also announced plans to invest $25 billion in data center and artificial intelligence infrastructure over the next two years in states across the biggest electric grid in the U.S.
India is increasingly attracting multinational players, such as Microsoft and AWS, to invest in the country’s cloud and AI infrastructure.
