Google is poised to make a substantial investment in India with a planned $10 billion data center hub in Visakhapatnam. This initiative marks Google's first data center cluster in India, signaling a significant expansion of its digital infrastructure in the region. The project, with a capacity of 1 GW, will be spread across three campuses and is expected to be operational by July 2028.

The Visakhapatnam location offers strategic advantages, particularly its coastal position, which allows the data centers to function as cable landing stations connecting to global networks via undersea cables. This connectivity is crucial for efficient data transfer and low-latency services, enhancing India's digital infrastructure and global connectivity. The development of this data center hub will require extensive submarine cable and fiber optic infrastructure.

This investment aligns with Google's broader strategy to expand its footprint in India and Southeast Asia, including ongoing data center projects in Singapore, Malaysia, and Thailand. It also supports Google's 2020 pledge to invest $10 billion over 5-7 years in India's digital ecosystem. This commitment included a $4.5 billion stake in Reliance Jio Infocomm, a major Indian telecom operator.

The data center is planned to be powered predominantly by green energy, aligning with Google's global sustainability goals and India's push to become a leading green energy market. Approximately $2 billion of the $6 billion investment is specifically earmarked for renewable energy infrastructure. This focus on renewable energy could serve as a model for sustainable digital infrastructure in emerging markets.

Andhra Pradesh has ambitions to become a major data center hub, aiming to install 6 GW of capacity over the next five years. The state is also planning to establish three new undersea cable landing stations in Visakhapatnam to further enhance digital connectivity. IT Minister of Andhra Pradesh, Nara Lokesh, stated that the state has already secured 1.6 GW of data center commitments.

Google has been steadily increasing its presence in India, launching cloud regions in Mumbai in 2017 and Delhi in 2021. The company is also planning to launch a sovereign AI cloud in partnership with Airtel Business. This new data center investment reinforces Google's commitment to supporting India's growing digital economy and its efforts to localize data processing.