Alphabet Inc.’s Google is reportedly preparing to invest nearly US $10 billion (₹88,700 crore) to build a large-scale 1 gigawatt data centre cluster in Visakhapatnam, Andhra Pradesh. The multi-campus complex—expected to go live by July 2028—marks one of Google’s biggest single infrastructure commitments in Asia and could turn the eastern coast of India into a strategic hub for cloud, artificial intelligence, and digital-services growth.
According to reports from The Economic Times and Business Standard, the project will comprise three major campuses located across Adavivaram, Tarluvada, and Rambilli (in the neighbouring Anakapalli district). Together, they form the backbone of what the state government calls an AI-ready digital corridor, connecting submarine cable landings, green-power generation, and advanced metro-fibre connectivity.
The plan, which has already been placed before the Andhra Pradesh State Investment Promotion Board chaired by Chief Minister N. Chandrababu Naidu, is expected to receive final approval within the month. A formal signing ceremony between Google executives and state officials has reportedly been scheduled for mid-October in New Delhi.
How does this project fit into Google’s India digital infrastructure strategy?
For Google, the investment forms the next leg of its Google for India Digitization Fund, announced in 2020 with a $10 billion allocation toward connectivity and cloud development. While that fund focused largely on partnerships, fibre rollout, and affordable devices, the Vizag cluster represents direct, capital-intensive ownership of infrastructure—a decisive shift toward long-term presence in India’s fast-growing data economy.
Industry observers note that a 1 GW capacity would make this complex one of the largest hyperscale data centre clusters in the Asia-Pacific region, rivaling deployments in Singapore, Osaka, and Sydney. Analysts suggest the site will anchor Google Cloud’s regional expansion while supporting latency-sensitive AI services such as Gemini AI, YouTube AI, and Workspace AI Assistant for Indian and Southeast-Asian customers.
The project also ties into India’s ambition to become an AI infrastructure exporter—a theme echoed by the Union Ministry of Electronics and IT, which has encouraged global hyperscalers to co-develop renewable-powered data campuses capable of supporting cross-border cloud workloads. By locating in Vizag, Google gains a geographic hedge against western-coast congestion near Mumbai and Chennai while positioning closer to under-construction submarine cables linking the US, Japan, and Southeast Asia.
What financial scope and timelines are being discussed for the Vizag data hub?
Initial estimates place the investment at $10 billion, up from $6 billion reported in mid-2025. That earlier figure included about $2 billion earmarked for renewable-energy infrastructure to power the site sustainably. The revised number suggests either a larger physical footprint or escalated costs from power integration and network-capacity expansion.
The construction window runs from late 2025 through July 2028, when the first phase is targeted to go operational. Sources cited in Business Standard indicate that each of the three campuses will be commissioned sequentially, each delivering around 300–350 MW capacity, before achieving full-scale integration under a single operations command.
Infrastructure commitments include two cable-landing stations for direct international bandwidth, an on-site 132 kV sub-station, and extensive fibre-optic metro loops connecting the cluster to Visakhapatnam port and national highway corridors. Industry executives familiar with the plan describe it as a “city-within-a-city”—complete with cooling towers, logistics hubs, staff housing, and on-premise renewable power from solar and wind hybrids.
Why legal hurdles and land disputes could decide the fate of Google’s Vizag data centre project
The project’s biggest hurdle so far lies in land acquisition and legal disputes across Tarluvada and adjacent villages. Around 200 acres have been earmarked for the cluster’s first phase, but the process has been mired in litigation. According to local media reports, multiple petitions have been filed in the names of farmers—some deceased—challenging government acquisition notices.
The state government alleges that these cases were instigated by “benami” or proxy landholders aiming to obstruct progress or seek higher compensation. Chief Minister Naidu has publicly directed revenue officials to verify all claimant identities and warned of strict legal action against fraudulent filings.
To address legitimate grievances, the government has raised compensation to ₹50 lakh per acre—nearly two-and-a-half times the base rate—while offering affected farmers residential plots, commercial shops, and employment opportunities in exchange for peaceful handover. Officials maintain that these steps will both secure social consent and prevent future litigation.
Still, the delays have pushed initial site-preparation schedules by several months, and project observers say full clearance of land titles remains a precondition before Google’s civil contractors can mobilize equipment. Until then, only preliminary soil testing and environmental-impact work are likely to proceed.
Why is Vizag emerging as a strategic hub for India’s cloud and AI economy?
Visakhapatnam, traditionally a port and industrial city, has been repositioning itself as a technology hub under Andhra Pradesh’s new economic plan. Its coastal geography gives it proximity to submarine cable routes landing from Singapore and Japan, while available land parcels and a pro-industry administration have made it attractive for hyperscale investments.
The state’s pitch to Google emphasised energy stability through dedicated renewable corridors, access to 24×7 power from the Simhadri Super Thermal Plant, and planned linkages to pumped-hydro storage facilities. Combined with the Chief Minister’s push for “Digital AP 2.0,” this has allowed Vizag to edge ahead of Bengaluru and Chennai for new data-centre proposals.
For Google, the advantage is two-fold. First, Vizag’s location helps de-risk India’s cloud infrastructure geography, which is currently concentrated on the western coast. Second, it offers political alignment: Naidu’s administration has positioned Andhra Pradesh as a test bed for AI-driven e-governance, agriculture, and digital public-service platforms—areas where Google Cloud’s AI offerings could find natural application.
What are analysts and institutional investors saying about Google’s India bet?
Analysts tracking hyperscale infrastructure describe Google’s plan as a “strategic deepening” of its India presence. Institutional sentiment appears broadly positive, viewing the move as validation of India’s stability and digital-infrastructure maturity.
Equity research desks note that such large-scale buildouts are long-gestation projects that typically create multi-layered supply-chain benefits: from civil-engineering contractors and renewable-energy developers to network-equipment suppliers like Sterlite Technologies and HFCL. The announcement has also boosted speculative interest in listed Indian firms involved in cable laying, green-power integration, and construction services.
However, investors remain cautious about execution risk. A ten-billion-dollar investment over three years, involving foreign-exchange exposure and regulatory approvals, demands stable macro and policy conditions. Delays or cost escalations could pressure Google’s ROIC targets and influence future capex pacing.
Still, analysts point to the company’s consistent global infrastructure expansion—from its $1.2 billion Finland campus to the $2 billion Iowa expansion—as proof that it tends to execute strategically rather than opportunistically. The Vizag move, therefore, is viewed not as a one-off experiment but as an integral part of Google’s long-term Asia-Pacific strategy.
What could this mean for Andhra Pradesh’s economy and employment outlook?
The project is expected to create thousands of direct and indirect jobs during construction and hundreds of permanent high-skill positions once operational. Data-centre technicians, energy-system engineers, security, logistics, and facility-management roles are among those anticipated.
State officials estimate that every megawatt of operational data-centre capacity supports up to 20 indirect jobs across utilities, maintenance, and ancillary services. That means the 1 GW complex could support over 20,000 indirect employment opportunities. Beyond jobs, the multiplier effect on urban housing, transport, and local services is likely to be substantial, particularly in the north-coastal districts.
The project could also transform Andhra Pradesh’s image from a manufacturing-heavy state into a digital-infrastructure powerhouse, complementing its industrial base in steel, pharma, and textiles with high-tech investment.
What makes this project strategically significant for India’s AI decade?
From a policy perspective, Google’s investment is timely. India’s Digital Personal Data Protection Act 2023 and evolving AI governance frameworks require multinational firms to maintain local data-processing capabilities. Having a 1 GW hyperscale facility within India ensures regulatory compliance and reduces latency for AI inference workloads.
For the Indian government, it’s a signal victory—a global technology major committing long-term capital in a region that has historically lagged behind the southern metros in digital infrastructure. For Google, it’s a hedge against geopolitical and operational risks elsewhere in Asia, while deepening its integration with the Indian digital ecosystem.
As global AI workloads grow exponentially, countries that host reliable, renewable-powered data infrastructure will capture disproportionate value. Vizag’s project positions India to compete in that race—if execution keeps pace with ambition.
What will determine whether the Vizag cluster meets its 2028 target?
In the next 12 months, the focus will be on clearing all legal hurdles, finalising environmental clearances, and establishing power-purchase agreements for renewable supply. Google will likely proceed in phases, beginning with smaller anchor modules before scaling to full capacity.
Success will depend on how quickly land disputes are resolved, how efficiently the state facilitates logistics and power infrastructure, and how consistently federal agencies coordinate approvals. A formal MoU in October 2025 would mark a critical inflection point—signalling not just intent but an executable roadmap.
If the project meets its timeline, Vizag could by 2028 stand alongside Singapore and Tokyo as a regional digital-infrastructure node. The symbolic weight of a $10 billion investment—paired with the real capacity to host AI workloads—could permanently change India’s position in the global data economy.
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