Google to invest $15 bn in India, build major AI hub in Andhra Pradesh

Google announced on Tuesday that it will invest $15 billion in India over the next five years, unveiling plans for a massive data centre and artificial intelligence (AI) hub in the southern city of Visakhapatnam, Andhra Pradesh.

Describing it as Google’s largest AI investment outside the United States, Google Cloud CEO Thomas Kurian made the announcement at a ceremony in New Delhi. He said the company will build a “gigawatt-scale AI hub” in Visakhapatnam, with plans to expand it to “multiple gigawatts” over time.

“This is the largest AI hub we are investing in anywhere outside of the US,” Kurian said.

The announcement comes as India, projected to have over 900 million internet users by the end of the year, experiences a surge in demand for AI solutions driven by business and personal use.

India’s Information Technology Minister, Ashwini Vaishnaw, welcomed the move, calling it a significant step toward realising the country’s "India AI vision."

Andhra Pradesh Chief Minister Chandrababu Naidu called it a “very happy day,” while the state’s Technology Minister Nara Lokesh described the investment as “game-changing.” Lokesh added that the announcement followed “a year of intense discussions and relentless effort.”

“It is a massive leap for our state's digital future, innovation, and global standing,” he wrote on X. “This is just the beginning.”

Google’s announcement comes amid growing interest from global AI firms in the Indian market. Earlier this month, U.S. startup Anthropic said it would open an office in India next year. Its CEO, Dario Amodei, met Prime Minister Narendra Modi, who highlighted India’s vibrant tech ecosystem and youth-driven innovation in AI.

OpenAI has also announced plans to establish an India office later this year, with CEO Sam Altman noting a fourfold increase in ChatGPT usage in the country over the past year.

In July, AI search firm Perplexity revealed a major partnership with Indian telecom giant Airtel, offering its 360 million users a free one-year subscription to Perplexity Pro.

SR