## Google to Invest $15 Billion in India's Largest AI Data Hub in Andhra Pradesh **News Title:** Google to build a $15bn AI data hub in India **Report Provider:** BBC News **Author:** Abhishek Dey **Publication Date:** October 14, 2025 --- ### Executive Summary Google's parent company, Alphabet, is set to make its largest global investment outside the United States by building a significant AI data hub in Visakhapatnam, Andhra Pradesh, southern India. This ambitious project, valued at **$15 billion (£11.29 billion)**, will be implemented over the **next five years**. The facility will integrate cloud and AI infrastructure with renewable energy systems and an expanded fiber-optic network, aiming to accelerate AI innovation and drive economic growth across India. This investment underscores India's growing importance as a destination for AI data centers, driven by its low data costs and expanding internet user base. --- ### Key Findings and Critical Information * **Major Investment:** Alphabet will invest **$15 billion (£11.29 billion)** to establish a new AI data hub in Visakhapatnam, Andhra Pradesh. * **Global Significance:** This will be Alphabet's **largest AI hub investment worldwide, outside of the United States**. * **Timeline:** The investment will be spread over the **next five years**. * **Strategic Location:** The facility will be located in the port city of Visakhapatnam, becoming part of Google's global network of AI centers across 12 countries. * **Project Scope:** The hub will combine **cloud and AI infrastructure with renewable energy systems and an expanded fiber-optic network**. * **Government Support:** The Andhra Pradesh government is actively supporting the project by offering **subsidized land and electricity** to attract global investors. * **Government Target:** This project aligns with the Andhra Pradesh government's plan to develop **6GW of data center capacity by 2029**. * **Impact on India:** Alphabet CEO Sundar Pichai stated the facility will "bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country." * **State's Digital Future:** Andhra Pradesh's technology minister, Nara Lokesh, described the project as "a massive leap for our state's digital future, innovation, and global standing." --- ### Key Statistics and Metrics * **Investment Amount:** **$15 billion (£11.29 billion)** * **Investment Horizon:** **Five years** * **Global AI Hub Ranking:** Largest outside the United States. * **Andhra Pradesh Data Center Capacity Goal:** **6GW by 2029**. * **India's Data Centre Industry Growth:** Crossed the **1GW capacity mark in 2024**, nearly tripling its 2019 level. --- ### Trends and Context * **India as a Tech Hub:** India has emerged as a crucial destination for AI data centers due to its **low data costs and rapidly growing internet user base**. * **Global Tech Investment Landscape:** The announcement comes amidst a broader trend of tech giants expanding their data infrastructure globally. It also occurs at a time when US President Donald Trump has been urging American companies to prioritize domestic investment. * **Data Center Definition:** Data centers are physical facilities housing computing and networking equipment (servers, storage, routers, firewalls) along with essential power and cooling systems for collecting, processing, storing, and distributing data. --- ### Notable Statements * **Thomas Kurian, CEO of Google Cloud:** "It's the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States." * **Sundar Pichai, Alphabet CEO:** The facility "will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country." * **Nara Lokesh, Andhra Pradesh Technology Minister:** "It is a massive leap for our state's digital future, innovation, and global standing." --- ### News Identifiers * **URL:** `https://www.bbc.com/news/articles/cx27yze8p0jo` * **Topic:** Technology * **Sub-topic:** AI * **Source:** BBC
Google to build a $15bn AI data hub in India
Read original at BBC →Abhishek DeyBBC News, GuwahatiGoogle's parent company Alphabet will invest $15bn (£11.29bn) to build an AI data hub in southern India's Andhra Pradesh state.The facility, which will be set up in the port city of Visakhapatnam, is going to be a part of Google's global network of AI centres spread across 12 countries."
It's the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States," Thomas Kurian, the CEO of Google Cloud, said at an event in capital Delhi on Tuesday, adding that the investment will be spread over the next five years.The announcement comes at a time when US President Donald Trump has been asking American companies to prioritise domestic investment.
India has emerged as a key destination for AI data centres. The country's low data costs and rapidly growing internet user base have made it a hub for cloud and AI expansion for tech giants.Alphabet CEO Sundar Pichai said the facility "will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country".
A formal agreement to finalise the project will be signed on Tuesday, the Andhra Pradesh government said."It is a massive leap for our state's digital future, innovation, and global standing," said the state's technology minister Nara Lokesh.The project will combine cloud and AI infrastructure with renewable energy systems and an expanded fibre-optic network.
The project is part of the Andhra Pradesh government's plan to develop 6GW of data centre capacity by 2029, according to Bloomberg News. Data centres are physical facilities that house the computing and networking equipment that organisations use to collect, process, store, and distribute data. They contain servers, storage systems and network equipment like routers and firewalls, along with the necessary power and cooling systems to operate them.
In Andhra Pradesh, the government has been offering subsidised land and electricity to attract global investors.India's data centre industry has grown rapidly over the past five years, crossing the 1GW capacity mark in 2024 and nearly tripling its 2019 level, according to global professional service firm JLL's India Data Centre Market Dynamics 2024 report.
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