Investment

Google To Invest $6 Billion In Andhra Pradesh To Build Asia’s Largest Data Centre

• ByStartupStory     |    July 31, 2025

In a significant move to boost India’s digital infrastructure, tech giant Google’s parent company, Alphabet Inc., is set to invest $6 billion in Andhra Pradesh to build a massive 1 gigawatt (GW) data centre along with allied power infrastructure. According to a Reuters report citing unnamed sources, the facility will be developed in the port city of Visakhapatnam and is expected to become Alphabet’s largest data centre in Asia, both in terms of investment value and capacity.

The investment will also include a $2 billion allocation toward the development of renewable energy sources to power the data centre. This is in line with Alphabet’s global sustainability goals, as it increasingly powers its facilities with green energy to reduce carbon emissions and environmental impact. The upcoming facility in Andhra Pradesh will mark Alphabet’s first such infrastructure project in India and is seen as a major endorsement of the country’s potential as a data and cloud services hub.

Speaking to Reuters, Andhra Pradesh’s Information Technology Minister Nara Lokesh confirmed that the state government has already finalised investments for data centre projects with a combined capacity of 1.6 GW. He added that several announcements, including Google’s investment, would be officially revealed in October. Lokesh further stated that Andhra Pradesh aims to establish data centres with a total capacity of 6 GW over the next five years. The majority of these data centres are expected to run on green energy, and state authorities estimate that the overall power generation requirement will be around 10 GW during the same period.

This development comes at a time when the global demand for data processing and cloud storage is growing rapidly, driven by the rise of generative AI technologies and widespread digital transformation. Tech companies worldwide are aggressively scaling up their data infrastructure, and India has emerged as a top destination due to its growing economy, tech-savvy population, and supportive policy environment.

Alphabet’s investment is part of a broader trend among global and domestic players ramping up their cloud and AI capabilities in India. Earlier this year, Microsoft committed $3.7 billion toward expanding its cloud and artificial intelligence infrastructure in the country. Similarly, Amazon announced plans to invest nearly $13 billion in cloud infrastructure by 2030. There have also been reports that OpenAI is exploring opportunities to establish a data centre in India, further underscoring the country’s strategic importance in the global tech ecosystem.

In addition to these developments, U.S. private equity major Blackstone is said to be planning an investment of $6 billion to build data centres in Maharashtra. Japanese IT major NTT DATA and AI cloud platform Neysa Networks have signed a memorandum of understanding with the Telangana government to establish a ₹10,500 crore AI data centre cluster in Hyderabad. Meanwhile, Reliance Group is reportedly working on building the world’s largest data centre by capacity in Jamnagar, Gujarat, with an expected capacity of 3 GW.

Alphabet’s investment in Andhra Pradesh is expected to have a far-reaching impact on the region’s economy, technology landscape, and employment generation. It will also place India firmly on the map as a global data hub capable of hosting some of the world’s most advanced AI and cloud operations. As the race for cloud dominance and AI capability intensifies, Andhra Pradesh’s strategic partnership with Alphabet marks a bold step toward positioning India as a leader in the next era of digital innovation.

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