Google is set to invest $15 billion in India over the next five years, marking a significant commitment to the country's digital future. This investment includes the establishment of a state-of-the-art artificial intelligence (AI) hub in Visakhapatnam, Andhra Pradesh, which will be Google's largest AI hub outside the United States. The announcement was made at the 'Bharat AI Shakti' event in New Delhi.
The new AI hub will feature a 1-gigawatt data center campus, integrating AI infrastructure, large-scale energy sources, and an expanded fiber-optic network. According to Google, this hub will help accelerate AI-driven transformation across India. The company plans to deploy its full AI stack at the facility. Thomas Kurian, CEO of Google Cloud, stated that the investment underscores Google's commitment to India's digital growth and its ambition to develop sustainable, locally integrated data infrastructure. He also noted that the Visakhapatnam hub will be Google's biggest AI investment outside the U.S. and will advance India's digital future. Google anticipates eventually scaling the center to multiple gigawatts.
Government officials have lauded Google's investment as a crucial step towards achieving India's AI vision. Union Minister for Electronics and IT, Ashwini Vaishnaw, believes that the AI hub will support skill development for IT professionals and boost India's digital economy. He also encouraged Google to explore opportunities in the Andaman Islands for undersea cable networks. Andhra Pradesh Chief Minister Chandrababu Naidu recalled his vision of bringing global technology companies to India, stating that this initiative aligns with the goal of Viksit Bharat by 2047, leveraging AI. Nara Lokesh, Andhra Pradesh state Technology Minister, described the investment as a "game-changing" development that signifies a massive leap for the state's digital future and global standing.
The establishment of the AI hub reflects the increasing global competition among tech companies to expand their AI data capacity. Demand for AI tools and solutions is surging in India, driven by growing adoption by businesses and individuals, with the number of internet users projected to exceed 900 million by the end of the year. Finance Minister Nirmala Sitharaman praised the collaboration, highlighting its potential to drive innovation and economic growth.
An analysis commissioned by Google and conducted by Access Partnership suggests that the AI hub is expected to generate at least $15 billion in American gross domestic product (GDP) over five years (2026-2030) due to increased cloud and AI adoption, as well as the American talent and resources involved in the project. This initiative is expected to create substantial economic and societal opportunities for both India and the United States.
Google's announcement follows similar moves by other major AI firms looking to expand their presence in India. Anthropic plans to open an office in India next year, and OpenAI has indicated that it will also open an office in India later this year, noting a significant increase in ChatGPT usage within the country.
