Google has announced a $15 billion investment to establish a 1-gigawatt data center and AI hub in Visakhapatnam, Andhra Pradesh, making it the company’s largest investment in India to date. The project will span the next five years through 2030, marking a major milestone in India’s digital and AI infrastructure development.

The initiative comes amid growing political efforts in India to promote local technology ecosystems and reduce dependence on U.S. tech giants. Despite this, Google continues to expand its presence, underlining India’s importance as both a strategic and operational hub.

A Strategic Expansion in Asia
Google Cloud CEO Thomas Kurian said the new AI hub will become part of a global network of AI centers across 12 countries, featuring Google’s Tensor Processing Units (TPUs) and infrastructure designed for high-performance AI workloads. The hub will also provide access to Gemini models and development platforms for building agents and applications.

“This hub will not just serve India but, from India, serve Asia and other parts of the world,” Kurian stated during the launch in New Delhi.

The facility will also support consumer products such as Google Search, YouTube, Gmail, and Google Ads, ensuring faster and more efficient delivery of AI-enhanced services.

Partnerships and Infrastructure Development
To build the AI and data center infrastructure, Google has partnered with Bharti Airtel and AdaniConneX, a data center joint venture backed by Adani Group. The project includes the construction of a subsea cable landing station in Visakhapatnam, expanding Google’s global connectivity network.

Kurian said the city is set to become a “digital backbone connecting different parts of India,” with plans to expand the capacity of the data hub to multiple gigawatts over time.

Political and Economic Context
The investment announcement follows recent U.S.-India trade tensions, including a 50% tariff imposed by the Trump administration on Indian imports. In response, Indian Prime Minister Narendra Modi has urged citizens to adopt “swadeshi” (Made in India) products. Local alternatives like Zoho, Arattai, and MapMyIndia have been promoted as homegrown competitors to Google’s services.

Despite these political dynamics, Google’s continued expansion underscores its confidence in India’s growing digital economy. The company employs 14,000 people in India and has operated in the country for over two decades, with Delhi and Mumbai already established as official cloud regions.

Government Backing and Future Expansion
India’s IT Minister Ashwini Vaishnaw praised Google’s investment, calling it a “key contribution to India’s AI mission goals.” He also urged Google to explore Andaman Islands as a future global internet data hub and proposed a Visakhapatnam–Sittwe connectivity route to enhance digital infrastructure in northeastern India.

The Visakhapatnam AI hub strengthens India’s position as a central player in the global AI ecosystem and deepens Google’s long-term commitment to the country’s technology development.