Google to invest $10 Billion in Vizag Hyperscale Data Center

Hyderabad: The Andhra Pradesh State Investment Promotion Board (SIPB) on Wednesday approved Google’s landmark hyperscale data center project in Visakhapatnam, representing an investment worth nearly USD $10 billion. This marks one of the largest foreign direct investment (FDI) commitments in India’s digital infrastructure sector to date.

Chaired by Chief Minister N Chandrababu Naidu, the SIPB recognised the project as a gamechanger for Andhra Pradesh’s IT ecosystem and endorsed plans to position Visakhapatnam as “AI City Vizag.”

The strategic branding aims to replicate the transformative impact of early anchor investments that have historically reshaped regional technology landscapes, anchoring a global hub for AI, Cloud, and Data Analytics under the Digital India, IndiaAI Mission, and Make in India initiatives.

Sources in Andhra Pradesh Information Technology, Electronics & Communications (ITE&C) Department, Google’s facility will comprise three major data center campuses in Adavivaram and Tarluvada (Visakhapatnam district) and Rambilli (Anakapalli district). All three campuses are expected to be operational by July 2028. The development will involve landing three high-capacity submarine cables through dedicated cable landing stations, along with extensive metro fiber networks and supporting telecommunications infrastructure.

“This investment underscores global confidence in Andhra Pradesh’s governance, policy stability, and execution capability,” said a senior ITE&C official. “The State offers single-window clearances, proactive facilitation, reliable utilities, renewable energy integration, and world-class industrial infrastructure—coordinated by the Economic Development Board and ITE&C Department to ensure long-term operational stability for hyperscale projects,” the official added.

Google’s data center is expected to serve as a cornerstone of modern economic infrastructure accelerating the adoption of AI, cloud computing, IoT, 5G, and e-governance platforms. The project will also boost ancillary sectors such as power, fiber optics, real estate, and telecommunications, while triggering upgrades in road, power, and fiber connectivity. It is projected to enhance State revenues through SGST, electricity duty, and property tax once the incentive phase concludes.

Aligned with Andhra Pradesh’s push for sustainable, renewable energy-driven data centers, the State plans to develop a dedicated Emerging Technologies Cluster around the proposed Google's facility to attract AI and cloud enterprises. This initiative aims to fast-track Vizag’s emergence as India’s AI Capital and a global node for digital transformation.

“The Government will work closely with Google and its partners to ensure timely execution, sustainable operations, and inclusive community development,” Chief Minister Chandrababu Naidu said. “This is more than an investment it’s a vision coming to life. Andhra Pradesh is proud to host one of the world’s largest technology projects, a testament to our policy strength, governance, and the capability of our people. The Google Data Center in Vizag will anchor our journey towards becoming the AI capital of India and a global hub for digital innovation,” Naidu added.

Independent assessments by Access Partnership (2025) and Google’s economic modeling estimate that the project will contribute an average of Rs 10,518 crore annually to the State’s Gross State Domestic Product (GSDP) during the first five years of operations (2028–2032), supporting approximately 1,88,220 direct and indirect jobs each year across construction, data center operations, engineering, IT services, and supply chain functions.

Beyond direct operations, Google Cloud-enabled productivity gains are expected to contribute Rs 9,553 crore per year amounting to Rs 47,720 crore over five years through digital enablement across the wider economy. At the national level, comparable digital infrastructure hubs could unlock up to USD $2.1 trillion in value addition and support 10 million jobs by 2047.