The announcement, made at an event in New Delhi attended by India’s IT and Finance Ministers, underscores Google’s growing commitment to India’s expanding digital ecosystem, even as diplomatic and trade tensions persist between New Delhi and Washington over tariffs and a stalled trade pact.
Google Cloud CEO Thomas Kurian described the upcoming facility in Visakhapatnam, a major port city, as the company’s “largest AI hub” outside the U.S., emphasizing its role in supporting India’s national AI ambitions.
“This long-term vision we have is to accelerate India’s own AI mission,” Kurian said.
The new data centre campus will feature an initial capacity of 1 gigawatt, reflecting Google’s global drive to scale up computing power amid surging demand for AI-based services. The company is spending an estimated $85 billion globally this year to expand its data infrastructure as tech giants race to build advanced AI capabilities.
Economic Boost and Strategic Partnerships
According to Andhra Pradesh state officials, the project—initially estimated at $10 billion—is now projected to create nearly 188,000 jobs directly and indirectly once construction and operations are underway.
Google’s India expansion will also leverage partnerships with local conglomerates including Adani Group and Bharti Airtel, which will help develop supporting infrastructure such as an international subsea gateway to enhance connectivity.
In a statement, Google said the initiative would “create substantial economic and societal opportunities for both India and the United States,” though it made no reference to the ongoing tariff dispute, which has strained bilateral relations.
Balancing Tensions and Growth
U.S.-based multinationals have recently faced boycott calls in India, following Prime Minister Narendra Modi’s appeal for greater self-reliance and protests against U.S. tariffs of up to 50% on imported Indian goods. However, Indian officials have privately assured American companies of a continued business-friendly environment, sources told Reuters.
Despite regulatory and antitrust challenges in India, Google sees the country as a vital growth engine, with YouTube commanding its largest global user base and Android smartphones dominating mobile usage.
Competitive Landscape
Google joins Microsoft and Amazon in expanding large-scale data centre operations in India—one of the world’s fastest-growing digital economies, home to nearly a billion internet users. Local industrial heavyweights Gautam Adani and Mukesh Ambani have also announced plans to deepen investments in AI and cloud infrastructure.
As global competition intensifies, the Visakhapatnam AI campus signals Google’s ambition to anchor its future AI and cloud services in India—a market that sits at the intersection of economic potential, geopolitical complexity, and technological transformation.