Visakhapatnam, July 31, 2025 — In a landmark move for India’s digital infrastructure, Google has announced a $6 billion investment to build a 1-gigawatt (GW) data center in Visakhapatnam, Andhra Pradesh, marking its first such project in the country. Set to be Asia’s largest data center in both capacity and investment size, this development is poised to transform Visakhapatnam into a global technology hub, bolstered by a $2 billion commitment to renewable energy to power the facility.

A Game-Changing Investment for Andhra Pradesh

The Visakhapatnam data center, part of Google’s parent company Alphabet’s $75 billion global data center expansion plan for 2025, will be constructed in the port city’s emerging “Data City” in Madhurawada, a 500-acre technology cluster aimed at establishing Andhra Pradesh as a leader in IT and AI innovation. The project includes significant infrastructure for renewable energy, aligning with global sustainability trends and ensuring the facility operates on green power.

Andhra Pradesh’s IT Minister, Nara Lokesh, highlighted the state’s ambitious digital goals, noting that it has already secured 1.6 GW of data center investments, including a $1.9 billion, 550-megawatt project by Sify Technologies. The state aims to scale its data center capacity to 6 GW within five years, surpassing India’s current total of 1.4 GW, as reported by real estate consultancy Anarock.

Boosting Connectivity with Cable Landing Stations

To support the data center’s high-speed connectivity needs, Andhra Pradesh is developing three cable landing stations in Visakhapatnam. These stations, critical for global network integration, will create a cable network twice the size of Mumbai’s, India’s current digital gateway. This infrastructure will position Visakhapatnam as a key hub for international data transmission, enhancing India’s role in Asia’s digital economy.

Economic and Employment Opportunities

Google’s investment is expected to generate significant economic benefits, including thousands of direct and indirect jobs in construction, IT operations, and support services. The project aligns with Andhra Pradesh’s IT & Global Capability Centres (GCC) Policy 2024–2029, which offers incentives like capital subsidies and rental support to attract tech giants. The state’s focus on green energy and digital infrastructure underscores its commitment to sustainable growth.

Strategic Context Amid Global Challenges

The announcement comes amidst economic uncertainties stemming from U.S. President Donald Trump’s recent 25% tariff imposition on Indian imports, which has sparked debates about India’s economic resilience. Despite these challenges, Google’s commitment reflects confidence in India’s digital potential, particularly in Andhra Pradesh, which is leveraging its post-2014 split from Telangana to rebuild its economic identity.

Why Visakhapatnam?

Visakhapatnam’s strategic location, robust port infrastructure, and the state government’s proactive policies make it an ideal choice for Google’s largest data center in Asia. The project builds on Google’s existing investments in India, including cloud regions in Mumbai (2017) and Delhi (2021), a $4.5 billion stake in Reliance Jio in 2020, and the upcoming Blue Raman subsea cable landing in Mumbai by Q4 2025.

A Step Toward India’s Digital Future

Google’s $6 billion data center in Visakhapatnam is a testament to India’s growing prominence in the global tech landscape. By combining cutting-edge infrastructure with sustainable energy solutions, the project not only strengthens Andhra Pradesh’s digital ecosystem but also positions India as a key player in the AI and cloud computing era. As the state prepares for further investment announcements in October, all eyes are on Visakhapatnam to lead India’s digital transformation.

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