"It's the largest AI hub that we are going to be investing"
Google’s parent company Alphabet will invest £11.29 billion to build an AI data hub in the southern Indian state of Andhra Pradesh.
The facility will be located in the port city of Visakhapatnam and will join Google’s global network of AI centres across 12 countries.
Thomas Kurian, Google Cloud CEO, said:
“It’s the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States.”
He added that the investment will be spread over the next five years.
The announcement comes as US President Donald Trump has urged American companies to prioritise domestic investment. Analysts say India’s growing tech sector has made it a strategic destination for global cloud and AI infrastructure.
India has become a major destination for AI data centres. Low data costs and a rapidly growing internet user base have made the country attractive for cloud and AI expansion.
Alphabet CEO Sundar Pichai said the facility “will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country”.
The Andhra Pradesh government said a formal agreement to finalise the project will be signed on October 14, 2025.
The state’s technology minister, Nara Lokesh, said:
“It is a massive leap for our state’s digital future, innovation, and global standing.”
The project will combine cloud and AI infrastructure with renewable energy systems and an expanded fibre-optic network.
It will also support local tech talent and businesses that rely on AI capabilities.
It is part of the Andhra Pradesh government’s plan to develop 6GW of data centre capacity by 2029. The state has been offering subsidised land and electricity to attract global investors.
Data centres are physical facilities that house computing and networking equipment organisations use to collect, process, store, and distribute data.
They contain servers, storage systems, and network equipment such as routers and firewalls, along with power and cooling systems to operate them.
India’s data centre industry has grown rapidly over the past five years, crossing the 1GW capacity mark in 2024 and nearly tripling its 2019 level, according to JLL’s India Data Centre Market Dynamics 2024 report.
Analysts say this growth positions India as a key player in global cloud and AI infrastructure.
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