Google to invest $15B in AI hub in southern India, its largest outside US

Google plans to invest $15 billion over the next five years to establish an artificial intelligence data center in the southern Indian state of Andhra Pradesh, marking its largest-ever commitment in the country.

“This is the largest AI hub we are going to be investing in anywhere in the world outside of the US,” said Thomas Kurian, CEO of Google Cloud, during an event in New Delhi.

Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, confirmed that the state government and Google will sign a memorandum of understanding for a 1-gigawatt AI hub in the state.

Lokesh described the announcement as the culmination of “a year of intense discussions and relentless effort,” adding that the agreement “is just the beginning” of Google’s long-term partnership with the state.

Andhra Pradesh to host multi-campus project

According to local media reports, including the Economic Times, Google’s Indian subsidiary Raiden Infotech will lead the project, developing three campuses across the coastal city of Visakhapatnam.

State officials also plan to double computing capacity in Andhra Pradesh over the next three years, aiming to position the region as a major AI and cloud hub in Asia.

The move reflects a broader trend of multinational tech firms increasing their investments in India’s digital infrastructure.

Microsoft, Amazon, and other global players have already poured billions into building data centers across the country, which now hosts one of the fastest-growing internet user bases in the world.

Global race to expand AI infrastructure

AI systems require immense computing power, driving the need for high-capacity data centers that can connect thousands of specialized chips.

Google alone plans to spend $85 billion this year on data center expansion globally, up from $75 billion earlier this year.

Reuters previously reported that the new Indian data center will be Google’s largest in both capacity and investment in Asia, complementing other large-scale projects in Singapore, Malaysia, and Thailand.

State IT Minister Nara Lokesh described the deal as a strategic milestone, saying, “In an era where data is the new oil, such initiatives will serve as a strategic advantage for the state and the nation.”

Strengthening India’s AI and cloud ecosystem

The project underscores India’s growing importance in the global AI and cloud services ecosystem.

As part of its recent quarterly results, Google said it would invest an additional $25 billion in AI and data infrastructure across key US states, signalling its intent to expand capacity worldwide.

With this latest move, India is rapidly emerging as a crucial hub for AI innovation and data infrastructure, as companies race to build the backbone for the next generation of intelligent technologies.