Google has announced a monumental investment of $15 billion over the next five years to establish its largest artificial intelligence (AI) data centre hub outside the United States in southern India. The significant commitment underscores India's growing importance as a global technology and data centre market, attracting major multinational players.
Key Takeaways
Google will invest $15 billion over five years to build its largest AI data centre hub outside the US in Visakhapatnam, Andhra Pradesh.
The facility will have an initial capacity of 1-gigawatt, with plans for significant scaling.
The investment is expected to generate substantial employment opportunities.
This move aligns with a broader trend of increased investment in India's digital infrastructure by major tech companies.
A Strategic Investment in India
Google Cloud CEO Thomas Kurian revealed the ambitious plan at an event in New Delhi, stating that the new facility in the port city of Visakhapatnam will be the company's most significant AI hub globally, excluding the US. This investment is part of a broader global network of AI centres being established by Google in 12 countries.
The initial phase of the project will see the development of a 1-gigawatt data centre campus. State officials have indicated that the project is expected to create approximately 188,000 jobs, highlighting the potential economic impact of this venture.
Driving AI Growth and Demand
The substantial investment comes at a time when demand for cloud services and AI capabilities is surging worldwide. Tech giants are heavily investing in data centre infrastructure to meet this growing need. Google itself has increased its capital expenditure forecast for 2025 to $85 billion, citing strong demand for its cloud products and services.
This initiative places Google alongside other major technology firms like Microsoft and Amazon, which have also committed billions to bolster their data centre presence in India. The country is increasingly recognised as a critical growth market, with nearly a billion internet users.
India's Expanding Digital Landscape
India's push towards digital transformation, championed by Prime Minister Narendra Modi, is attracting significant foreign investment. The development of robust data centre capacity is seen as a cornerstone of this strategy. However, challenges such as limited water resources and inconsistent power supplies remain factors that infrastructure projects in the country must navigate.
The agreement for the Visakhapatnam hub is expected to be formalised, marking a significant milestone in India's journey to become a global leader in AI and digital infrastructure.