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Google has unveiled plans for a US$6 billion investment to establish a 1-gigawatt data centre and accompanying power infrastructure in Visakhapatnam, Andhra Pradesh. It represents the first major data centre project in India and is set to become the largest in Asia by both capacity and capital commitment.
The new Google Visakhapatnam Data Centre marks a major step in strengthening India’s digital infrastructure. An additional US$2 billion will be allocated to developing renewable energy sources, primarily solar and wind, to power the data centre sustainably with clean energy.
Andhra Pradesh Minister for Education, IT, and Electronics, Nara Lokesh, urged Google to establish a Chip Design Centre within its upcoming data campus in Visakhapatnam, citing the state's completed infrastructure and strategic location.
Following a December 2024 MoU to build a Data City, Lokesh highlighted AP’s potential as a global hub for server maintenance and repair, leveraging strong port and air connectivity.
Google’s US$75 billion expansion of cloud and AI infrastructure across Asia - including key landings in Singapore, Malaysia, and Thailand - underscores a broader regional push toward digital connectivity.
The vision advances Andhra Pradesh’s goal of becoming a major digital hub, with focused investments in cable landing stations and green infrastructure positioning Visakhapatnam as a central node in Asia’s digital ecosystem.
India is witnessing a steep surge in demand for infrastructure. India’s data centre capacity of 1.3 GW is set to double by 2026, fueled by cloud, AI, and localization mandates. The Visakhapatnam data centre is one of the grand-scale initiatives propelling national targets and fast-tracking the move towards massive digital infrastructure.
Sustainability is increasingly gaining centre stage with hyperscalers worldwide. Google invests a large chunk of its renewable energy in powering its operations with cleaner sources. The intent is in consonance with broadly set corporate targets of 24/7 carbon-free operations by 2030.
Andhra Pradesh plans to ensure three cable landing stations are built at Visakhapatnam to offer high-speed connectivity. This network is designed to surpass Mumbai's scale, thereby strengthening the region's status as the new digital gateway.
The government anticipates that data-centric industries, mostly green, may demand up to 10 GW of power in the next five years. Economically, the data centre boom promises to generate thousands of jobs across multiple sectors, including construction, operation, and IT support.
Also Read: OpenAI-Google Cloud Partnership Marks Shift in AI Infrastructure Strategy
Data centres are major energy consumers and require colossal amounts of energy. Google's allocation of US$2 billion considers thermal and carbon ramifications in the renewable sector.
Yet, analysts have cautioned that any significant delay in scaling up local green generation will only prolong the dependence on coal-based sources that ensure backup reliability.
With the Google Data Centre coming up in Vizag, the region is poised for a tech-driven economic boost. In Andhra Pradesh, coal-based power generation still forms part of the grid mix, thus spurring worries over potential carbon lock-in if renewables do not keep pace with demand growth.
From the perspective of Andhra Pradesh's citizens, it is a landmark economic development and vindication of Google's IT strategy. Ironically, the Google-Vizag facility puts the company into a fierce battle with AWS and Microsoft on Indian soil, as the cloud market is growing quickly.
At a broader level, the project reflects India’s ambitious vision for a sustainable future powered by next-generation large-scale digital infrastructure. Google’s hyperscale data centre in India, backed by a $6 billion investment in Andhra Pradesh, represents a once-in-a-generation opportunity for both India and Asia to lead in digital innovation and green energy integration.
It links the growth of renewable energy with digital infrastructure. It is expected to succeed in terms of execution, grid robustness, and balancing economic uplift with sustainability aspirations.
