Google to invest $15 billion in India's AI infrastructure hub

Google is committing a $15 billion investment to establish a 1-gigawatt data center and AI hub in India, even as the Indian government advocates for reduced dependence on U.S. technology giants.

On Tuesday, Google announced plans to build the data center in Visakhapatnam, a port city in the southern state of Andhra Pradesh. The company stated that this investment will be deployed over the next five years, concluding in 2030. This represents Google’s largest financial commitment in India to date, building on the $10 billion investment pledge the company first made in 2020.

Shortly after President Donald Trump imposed 50% tariffs on Indian imports in August, Prime Minister Narendra Modi began championing the use of 'swadeshi' (Hindi for "made in India") products. In reaction, Indian legislators and government bodies started endorsing domestic alternatives to Google's services. These include offerings from Zoho Corporation, a Chennai-based enterprise technology company that provides solutions competing with Google Cloud and Gmail, the recently launched messaging app Arattai as a rival to WhatsApp, and MapMyIndia as an alternative to Google Maps. While the immediate effect has been modest, these initiatives could present a significant political challenge to the future operations of companies like Google and Microsoft in the Indian market.

Google employs 14,000 people in India and has been operating in the country for 21 years. The company also designates Delhi and Mumbai as official cloud regions.

Google Cloud CEO Thomas Kurian stated that the new AI hub will be the company's most substantial investment outside the United States and mentioned that its capacity will be expanded to "multiple gigawatts" in the future.

"This facility is part of a worldwide network of AI centers spanning 12 countries," Kurian said during the hub's launch event in New Delhi. "Furthermore, we are excited to announce that Visakhapatnam will be developed into a global connectivity hub."

Google also revealed its intention to extend its subsea cable infrastructure to Visakhapatnam. The U.S. technology leader has entered into a partnership with Indian telecommunications provider Bharti Airtel to construct both the data center and a cable landing station in the city. Additionally, Google is collaborating with AdaniConneX, backed by the Adani Group, to establish the necessary infrastructure for the data center.

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"We envision it evolving into more than just a landing point for numerous submarine cables; it will also serve as a digital backbone interconnecting various regions across India," Kurian added.

Google confirmed that the AI hub will provide a comprehensive suite of solutions, which includes its proprietary Tensor Processing Units (TPUs) to facilitate local AI computation.

The Mountain View–headquartered company will also grant access to its AI models, including Gemini, alongside its platform for developing AI agents and applications. The hub will further bolster consumer services such as Google Search, YouTube, Gmail, and Google Ads.

"We anticipate this hub will not only serve India but will also cater to Asia and other global markets from its Indian base," Kurian remarked.

Google's selection of Visakhapatnam in Andhra Pradesh is a strategic one. The southern state, governed by Chief Minister N. Chandrababu Naidu, has a proven track record of attracting global technology firms; it previously drew Oracle and Microsoft to establish significant operations in Hyderabad, the former capital of Andhra Pradesh before the formation of Telangana. Naidu, a crucial political ally who supported Prime Minister Modi's re-election, has since become an influential voice in national policy discussions.

"This AI hub will significantly advance the objectives of India's AI mission through various avenues," commented Indian IT Minister Ashwini Vaishnaw.

The minister encouraged Google to evaluate India's Andaman Islands as a potential future hub for international internet data transfer, pointing out that Singapore's capacity is "fully saturated." He pledged the government's complete support and also suggested a connection between Visakhapatnam and Sittwe in Myanmar to enhance digital connectivity for India's northeastern states.