Google Announces $6 Billion Data Center Investment in Vishakapatnam, Andhra Pradesh

Tech giant Google’s parent Alphabet is planning to invest $6 billion to build a 1 GW data center in Andhra Pradesh, Inc42 reported. This landmark data centre will be built in Visakhapatnam and will include an investment of $2 billion towards a renewable energy capacity to power the data centre.

The IT Minister of Andhra Pradesh, Nara Lokesh, said, “We’ve made certain announcements like Sify (550-MW data centre to be built in the state), which are public… There are certain announcements which are not yet public. In October, we will make those announcements.”

Major Investment Transforms Country’s Tech Landscape

The decision by Google to invest in Andhra Pradesh comes as part of the company’s broader strategy to strengthen its presence in the Indian market. The substantial investment will create thousands of jobs and position the state as a major hub for digital infrastructure in South Asia.

This announcement coincides with the artificial intelligence boom that has prompted major technology companies to invest billions into data center infrastructure for expanding cloud computing capabilities. Microsoft has pledged approximately $3.7 billion for cloud and AI infrastructure development in India, while Amazon intends to spend nearly $13 billion on the country’s cloud infrastructure by 2030.

Strategic Location Offers Multiple Advantages

Google’s data Centre in Visakhapatnam will be strategically positioned to serve customers across India and neighboring regions. Visakhapatnam’s coastal location provides excellent connectivity options and access to reliable power infrastructure needed for large-scale AI data center operations.

The city’s existing industrial base and skilled workforce make it an ideal location for this type of high-tech facility. Local universities and technical institutions can supply a skilled workforce to operate and maintain the facility’s advanced infrastructure.

Nara Lokesh said that the state government has finalised investments in data centers with a total capacity of 1.6 GW and aims to build 6 GW data centers in the next five years. He said, “We’re also working on getting three cable landing stations in Visakhapatnam. We want to create enough of cable network, which will be two times what Mumbai has today.”

Economic Impact Extends Beyond Technology

Google’s $6 billion data centre project will create wide ranging impacts throughout Andhra Pradesh’s economy. Beyond direct employment at the facility, the project will generate opportunities for local businesses in construction, logistics, security, and various support services.

Local educational institutions are expanding their tech programs to meet future workforce demands.. This investment in human capital will benefit the state long after the data center construction is complete.

The project also positions Andhra Pradesh as a destination for other major technology investments, potentially attracting additional data center projects and related businesses to the region.