This development is part of Andhra Pradesh’s broader strategy to become a key data and technology hub, aiming to build 6 GW of data center capacity over five years, with total investments evolving from $6 billion to $10 billion.

Google has approved a landmark USD $10 billion hyperscale data center project in Visakhapatnam, Andhra Pradesh, marking one of the largest foreign direct investments in India's digital infrastructure.

The investment reflects strong confidence in Andhra Pradesh’s governance, infrastructure, and policy environment, supported by incentives such as single-window clearances and renewable energy initiatives.

The investment will also fund upgrades to India’s digital infrastructure, including submarine cables, cable landing stations, and fiber optic networks, to enhance internet speed and support local businesses.

This project aims to establish Visakhapatnam as an 'AI City' and a global hub for AI, cloud, and data analytics, transforming the region's digital economy.

The data center will support advancements in AI, IoT, 5G, and e-governance, while boosting sectors like power, fiber optics, real estate, and telecommunications, and increasing state revenues through taxes.

The formal agreement between Google and the Andhra Pradesh government is expected to be finalized on October 14, with nearly 200 acres in Tarluvada already identified for development.

The project includes three major data center campuses in Adavivaram, Tarluvada, and Rambilli, expected to be operational by July 2028, supported by submarine cables and advanced telecommunications infrastructure.

India’s data center industry is projected to reach over $11.6 billion by 2032, driven by increasing demand for faster data processing and digital services.

Google’s investment aims to position Visakhapatnam as a regional AI hub, with plans to support AI, cloud, and data analytics sectors, potentially transforming India’s digital landscape.

Currently, Amazon, Microsoft, and Google account for about 30% of India’s data center demand, with their investments—$8.2 billion by Amazon and $3 billion by Microsoft—expected to grow this share.

Other global tech giants are also investing heavily in India’s cloud and AI infrastructure, reflecting a broader industry trend driven by rising digital consumption and AI adoption.