Google to Invest $15 Billion in Major AI Data Centre Hub in India

NEW DELHI – In a massive bet on India’s digital future, Google announced on Tuesday it will invest $15 billion over five years to establish a new artificial intelligence data centre in the southern state of Andhra Pradesh, marking its largest investment to date in the world’s most populous nation.

The strategic move comes amid a backdrop of trade tensions between New Delhi and Washington, yet underscores the critical importance of the Indian market for global tech giants. The new hub, to be located in the port city of Visakhapatnam, will be Google’s largest AI data centre facility outside the United States.

“This long-term vision we have is to accelerate India’s own AI mission,” said Google Cloud CEO Thomas Kurian at an event in New Delhi, which was attended by senior Indian ministers. The data centre campus is planned to have an initial capacity of a substantial 1 Gigawatt.

This investment is part of Google’s broader commitment to spend approximately $85 billion globally this year to expand data centre capacity, as tech companies race to build the infrastructure needed to meet soaring demand for AI services.

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The announcement arrives during a delicate period in US-India trade relations, characterized by a standoff over tariffs and a stalled trade deal. This has led to calls from supporters of Prime Minister Narendra Modi to boycott foreign goods.

Without directly referencing the tariffs, Google stated the initiative “creates substantial economic and societal opportunities for both India and the United States.” According to sources, Indian officials have recently assured US companies of a favorable business environment despite the ongoing trade disputes.

India, with nearly a billion internet users, represents a critical growth market. Google’s parent company, Alphabet Inc., counts India as a key region where YouTube has its largest user base and Android phones dominate the market.

The tech giant is partnering with local conglomerates Adani Group and Airtel to build the infrastructure for the new project, which will also include a new international subsea cable gateway. The move places Google in direct competition with rivals Microsoft and Amazon, which have also poured billions into data centres in India. Domestic billionaires Gautam Adani and Mukesh Ambani have also unveiled major investments in the sector.

While promising significant economic opportunities—state officials previously estimated the project could generate 188,000 jobs—Google continues to navigate regulatory challenges in India, including antitrust cases and a recent lawsuit concerning its AI policies.