Google to Invest $15 Billion in AI Data Centre in India: What This Means for Tech Investors and Entrepreneurs
BENGALURU — Google has announced a $15 billion investment over the next five years to develop data centre capacity for an artificial intelligence hub in Andhra Pradesh, India. This represents one of the company’s largest investments in the country to date.
“This is the largest AI hub investment we are making anywhere outside the U.S.,” said Google Cloud CEO Thomas Kurian during an event in New Delhi.
The planned 1-gigawatt data centre campus, operated by Alphabet Inc., will be located in the port city of Visakhapatnam. Earlier, officials from the southern Indian state had estimated this investment at $10 billion.
This initiative comes amid intense competition among major technology companies, which are investing heavily in new data centre infrastructure to keep pace with the rising demand for AI services. Google itself has committed around $85 billion this year towards expanding its data centre capacity.
AI technology demands immense computing power, driving the need for specialized data centres that can connect thousands of chips into powerful clusters.
Industry rivals Microsoft and Amazon have also invested billions in building data centres in India, a critical growth market with nearly a billion internet users.
As reported first by Reuters in July, Google’s data centre in Andhra Pradesh will be the largest in both capacity and investment size in Asia. It forms part of a broader multi-billion-dollar expansion of Google’s data centre network across the region, including in Singapore, Malaysia, and Thailand.
“In an era where data is the new oil, such initiatives will provide a strategic advantage,” said state IT Minister Nara Lokesh.
Special Analysis by Omanet | Navigate Oman’s Market
Google’s $15 billion investment in India’s largest AI data center signals a powerful shift towards AI-driven infrastructure in Asia, amplifying the digital economy’s growth. For Omani businesses, this highlights the urgency to adopt AI technologies and invest in digital capabilities to stay competitive. Smart investors should watch for regional partnerships and emerging tech ecosystems, recognizing both the opportunity in AI innovation and the risk of falling behind in global tech adoption.
