Google announces $15 billion investment in new India AI data center, largest outside U.S.

Google has announced an investment plan to build the largest artificial intelligence (AI) data center and hub in India, marking its biggest financial commitment to the country to date. The U.S. tech giant’s parent company Alphabet is set to invest approximately $15 billion over the next five years (2026-2030) to establish a vast AI data center complex in Visakhapatnam, a port city in the southern Indian state of Andhra Pradesh.

This project will become Google’s largest AI hub anywhere outside the United States, reflecting the surging global demand for cloud services and AI capabilities. The new campus will initially feature a capacity of 1 gigawatt of energy to power extensive data center operations and is expected to scale up to multiple gigawatts as AI compute needs grow.

Strategic location and infrastructure

Visakhapatnam, chosen as the site for this investment, is strategically located in southeastern India and serves as a vital port city with growing technological prominence.

Google Cloud CEO Thomas Kurian highlighted the significance of this hub as a “digital backbone” that will connect various regions across India, accelerating the adoption of AI-driven services and fostering innovation nationwide.

The investment includes not just data center infrastructure but also the development of critical supporting facilities. These further encompass new large-scale energy resources to meet the immense power requirements and an expanded fiber-optic network to ensure high-speed connectivity. This multi-faceted approach ensures that the AI hub will serve as a state-of-the-art facility positioned at the forefront of technological advancements.

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Driving India’s digital transformation

Google’s $15 billion investment aligns closely with the Indian government’s “Viksit Bharat 2047” vision, a transformational initiative aimed at making India a leading digital economy by 2047. The AI hub is expected to play a pivotal role in realizing this vision by stimulating AI innovation, creating high-value employment opportunities, and fostering economic growth within the country.

The project also highlights the strengthening of U.S.-India tech cooperation, emphasizing secure and responsible AI development. It is anticipated to enhance collaboration between the two nations and benefit both economies through increased research and development activities and technological exchange. 

Globally, Google has been intensifying its capital expenditures to meet the exploding demand for cloud computing and AI capabilities. In 2025 alone, the company raised its capital expenditure forecast to $85 billion, up from $75 billion earlier in the year, underscoring the massive scale of infrastructure investment required to support next-generation technologies like AI. 

India has become a key focus area for major multinational tech corporations including Microsoft and Amazon, who have also invested billions in the country’s data center infrastructure. Google’s expansion represents the largest investment in Asia for AI data center capacity, which is part of a broader regional expansion including countries such as Singapore, Malaysia, and Thailand. 

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