Visakhapatnam, Andhra Pradesh – In a move poised to significantly boost Andhra Pradesh's digital economy, Google is set to invest $10 billion (₹88,000 crore) to establish a major data center cluster in Visakhapatnam. The State Investment Promotion Board (SIPB), chaired by Chief Minister N Chandrababu Naidu, has already approved the landmark project, recognizing it as a game-changer for the state's IT ecosystem. This Foreign Direct Investment (FDI) commitment is among the largest digital infrastructure investments in India and solidifies Andhra Pradesh's position as a leader in attracting high-value, technology-driven projects.
The project, expected to be operational by July 2028, will consist of three data center campuses located in Adavivaram and Tarluvada villages in Visakhapatnam district, and Rambilli village in Anakapalli district. The massive data center cluster, spanning 639 acres, will have a computing capacity of 1 gigawatt and will form the backbone of India's first international AI Infrastructure Hub.
The construction of this cluster will involve the installation of three high-capacity submarine cables, dedicated cable landing stations, and metro fiber lines to support the telecommunications infrastructure. A formal agreement between Google executives and Andhra Pradesh's IT and electronics minister, Nara Lokesh, is expected to be signed in New Delhi on October 14.
Independent assessments by Access Partnership and Google's economic modeling project that the data center will contribute an average of ₹10,518 crore annually to the Gross State Domestic Product (GSDP) during the first five years of operation, from 2028 to 2032. Furthermore, the project is expected to create approximately 188,220 direct and indirect jobs per year across various sectors, including construction, data center operations, engineering, information technology, and supply chain functions. Google Cloud's productivity-led impact is projected to add ₹9,553 crore annually, totaling ₹47,720 crore over five years, through digital enablement across the economy.
Chief Minister N Chandrababu Naidu has emphasized the importance of positioning Visakhapatnam as "AI City Vizag," with the goal of establishing a global hub for AI, cloud, and data analytics, aligning with national initiatives such as Digital India, IndiaAI Mission, and Make in India. The project is expected to accelerate the state's transition to an AI-enabled digital economy.
Andhra Pradesh will need to ensure a power supply of 2500MW per day, millions of gallons of water for cooling, and the laying of high-capacity submarine cables and fiber lines to support the data center's operations. Amazon and Microsoft are also expanding their cloud networks and AI data centers in India, investing $8.2 billion and $3 billion, respectively.
