Furthering India's AI mission, Google has inked a transformative partnership with the Andhra Pradesh government to build a $10 billion (₹80,000 crore) AI and data centre hub in Visakhapatnam. Dubbed 'AI City Vizag,' this gigawatt-scale hyperscale campus – anchored by a 1GW data centre – is poised to become the world's largest AI hub outside the United States, reshaping India's digital landscape and positioning the coastal city as a beacon for tech innovation.
Google CEO Sundar Pichai met with Prime Minister Narendra Modi to brief him about the Vishakapatnam AI Hub. "Great to speak with India PM @narendramodi @OfficialINDIAai to share our plans for the first-ever Google AI hub in Visakhapatnam, a landmark development. This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure. Through it we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.
The agreement, signed today, in the presence of Chief Minister N. Chandrababu Naidu, Union Finance Minister Nirmala Sitharaman, and IT Minister Ashwini Vaishnaw, marks one of Google's most ambitious investments in Asia.
Google Cloud CEO Thomas Kurian, flanked by VP of Global Infrastructure Bikash Koley and Asia-Pacific President Karan Bajwa, hailed the project as a "flagship" in Google's global network spanning 12 countries. It will deploy the company's full AI stack – encompassing advanced infrastructure, expansive fibre-optic networks, and clean-energy integration – all linked seamlessly to Google's worldwide subsea and terrestrial systems for unparalleled connectivity.
A Colossus in Scale: From Blueprint to Gigawatt Powerhouse
At its core, the Vizag AI hub isn't just a data centre; it's an integrated ecosystem designed for the AI era. Spanning a 1GW capacity – equivalent to powering a mid-sized city – the facility will scale to multiple gigawatts over five years, with an initial $10 billion infusion accelerating development. This dwarfs many existing Indian projects and rivals global giants, underscoring Google's bet on India's burgeoning tech talent and renewable energy potential. The state has fast-tracked approvals through its Economic Development Board, offering single-window clearances, plug-and-play infrastructure, and renewable-ready utilities to ensure swift rollout.
Andhra Pradesh isn't stopping at Google. Emboldened by this deal, the state eyes a staggering 6GW data centre capacity within three years, including a 500MW pact with Sify and talks with four more firms. This ambition extends to the Greater Vishakha Economic Corridor, a sprawling development from Srikakulam to Anakapalli, blending IT, pharma, steel, and medical devices into a unified growth engine.
What It Means for India: Jobs, Growth, and Global Clout
This isn't mere infrastructure – it's a catalyst for India's AI sovereignty. State projections paint a vivid picture. The hub could generate 188,220 jobs annually, fuelling direct and indirect employment for over 200,000 people per GW of capacity. Economically, it promises an average ₹10,518 crore boost to the Gross State Domestic Product (GSDP) yearly from 2028–2032, plus ₹9,553 crore in Google Cloud-driven productivity gains – totaling ₹47,720 crore over five years. For a nation where AI could add $500 billion to GDP by 2025, Vizag's rise signals a pivot from back-office outsourcing to cutting-edge innovation.
Broader implications ripple nationwide. By embedding clean energy and resilient networks, the project addresses criticisms of data centres as resource hogs, aligning with India's green tech goals. It resolves thorny issues like taxation, data localisation, and lawful interception through central-state collaboration, paving the way for more foreign tech inflows. Vizag, once known for ports and steel, now joins Bengaluru and Hyderabad on the global tech map – potentially compressing decades of Hyderabad-style growth into years.
For everyday Indians, this means accelerated AI adoption: from smarter healthcare and agriculture to enhanced cybersecurity and education. As IT Minister Nara Lokesh put it, it's a 'transformative step' turning Andhra Pradesh into a 'digital powerhouse.' With Prime Minister Narendra Modi’s nod, the hub could inspire similar 'AI Cities' elsewhere, democratising tech benefits across states.
