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Google will invest USD 10 billion to establish a large-scale data centre and artificial intelligence hub in Visakhapatnam, Andhra Pradesh, marking its biggest investment in India so far. The project involves building a 1-gigawatt data centre campus equipped with AI infrastructure, renewable energy systems, and expanded fibre-optic connectivity. The Andhra Pradesh government has also announced plans to scale data capacity to 6 GW in the coming years. However, some legal and land acquisition issues have arisen around the project's designated sites.
Google is set to invest USD 10 billion to develop a data centre and AI campus in Andhra Pradesh. The investment will focus on creating a 1-gigawatt data centre in the port city of Visakhapatnam, combining advanced AI systems, energy-efficient operations, and an expanded fibre-optic network. According to the Andhra Pradesh government, this will be Google's largest investment in India to date. Advertisement
The agreement for the project is expected to be formalized shortly. The initiative is part of a larger effort by global technology firms to build data infrastructure capable of supporting fast-growing AI applications and cloud computing services. Officials indicated that the project's scale has grown from earlier plans that mentioned an investment of around USD 6 billion, with about USD 2 billion originally meant for renewable energy development.
The state government has identified three locations Tarluvada, Adivivaram, and Rambilli for setting up multiple campuses as part of the broader 1-GW project. Google's investment, valued at roughly INR 87,520 crore, is expected to position Visakhapatnam as a key technology and data hub in the region. Andhra Pradesh IT Minister Nara Lokesh noted that data has become an essential economic resource and that such projects can strengthen the state's position in the digital economy.
Andhra Pradesh has been working to expand its data centre capacity, with commitments already secured for around 1.6 GW. The state aims to reach 6 GW in the next few years, supported by both domestic and international investors. Companies like Sify and Meta have also announced projects in the region, with Meta's undersea cable network and Sify's AI-edge data centres expected to improve global connectivity and complement Google's upcoming facility.
Despite the strong investment outlook, the project has encountered land acquisition challenges. Nearly 200 acres in Tarluvada have been marked for Google's main campus, but ownership disputes and legal petitions have delayed the process. Some petitions were filed by individuals claiming ancestral rights over the land, though one of the main claimants has reportedly passed away, creating further procedural delays. To address concerns, the state government has proposed a compensation package of INR 50 lakh per acre about 2.5 times higher than the revised benchmark rate along with employment opportunities, residential plots, and shop spaces for affected families. The Chief Minister has directed officials to resolve disputes promptly and ensure that construction timelines are not disrupted.
The development aligns with India's broader goal of attracting global investment in data infrastructure, especially as demand for AI computing and cloud storage continues to grow. Andhra Pradesh's strategic coastal location and strong connectivity make Visakhapatnam an ideal choice for such large-scale digital projects.
Source Reuters
5th Jun, 2025
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