Google Launches $15 Billion AI Hub in Visakhapatnam

India’s Andhra Pradesh government and Alphabet’s Google announced on October 13, 2025, that the company will invest $15 billion over the next five years to build its largest AI hub outside the United States in Visakhapatnam. The project includes a gigawatt-scale data centre campus, a subsea cable gateway, and major clean-energy infrastructure.

Key Facts

What happened: Google and the Government of Andhra Pradesh signed an agreement to establish a 1 GW AI and data-centre complex in Visakhapatnam.
When: Agreement formalised on October 13, 2025; construction to begin in early 2026.
Where: Visakhapatnam, Andhra Pradesh.
Who: Google Cloud CEO Thomas Kurian, Andhra Pradesh IT Minister Nara Lokesh, Chief Minister Chandrababu Naidu, and Prime Minister Narendra Modi (endorsement on X).

“In a time when data is regarded as the new oil, such projects will provide a significant competitive edge,” said Nara Lokesh, Andhra Pradesh IT Minister.

PM Modi posted on X: “Delighted by the launch of the Google AI Hub in the dynamic city of Visakhapatnam… It will be a powerful force in democratising technology and securing India’s place as a global technology leader.”

Why Visakhapatnam?

India has emerged as a major destination for data-centre investments, supported by rising AI demand and government incentives like production-linked schemes and tax breaks. Visakhapatnam was chosen for its port connectivity, stable power grid, and robust fibre-optic network.

Official Statements

Thomas Kurian, Google Cloud CEO: “This will be the largest AI hub we are investing in anywhere in the world outside the United States.”
Chandrababu Naidu, Andhra Pradesh CM: “The project will accelerate Andhra Pradesh’s transformation into a digital innovation corridor.”
Ministry of Electronics and IT: The investment aligns with India’s “Digital India” and “Viksit Bharat 2047” visions.

Industry and Public Reactions

Industry Analysts: See the investment as a strong signal of India’s growing role in the global AI ecosystem. However, they note challenges in sustainable power supply and skilled talent availability.
Competitors: Amazon and Microsoft are closely monitoring the development, with expectations of similar commitments.
Civil Society Groups: Welcome the job opportunities but stress the need for upskilling programmes to ensure inclusive benefits.

Expected Impact

Economic: Over 200,000 direct and indirect jobs are expected, with spillover benefits to construction, power, and telecom sectors.
Social: The hub aims to support AI research and applications in agriculture, education, and healthcare.
Operational: It will position Visakhapatnam as a strategic digital hub on India’s east coast, enhancing global connectivity via the subsea gateway.

Global and Geopolitical Context

The investment reinforces U.S.–India tech cooperation, strengthening India’s role in global AI infrastructure and diversifying Google’s network beyond North America and Europe. It also comes amid intensifying competition among major tech firms to expand AI infrastructure worldwide.

FAQs

Q1. What is the Google AI Hub project in Visakhapatnam?

A. It is Google’s largest AI hub outside the U.S., featuring a gigawatt-scale data centre, subsea cable gateway, and clean energy infrastructure.

Q2. How much is Google investing?

A. Google will invest $15 billion over five years.

Q3. When will construction begin?

A. Construction is scheduled to start in early 2026.

Q4. How many jobs will the project create?

A. Over 200,000 direct and indirect jobs are expected across multiple sectors.

Q5. Why is Visakhapatnam significant for this project?

A. The port city offers strong infrastructure, power grid stability, and digital connectivity, making it ideal for large-scale AI infrastructure.