Andhra CM Naidu lays foundation for $15 bn Google AI data centre in Vizag
Andhra Pradesh Chief Minister N. Chandrababu Naidu laid the foundation stone for the $15 billion Google AI data centre in Visakhapatnam, in what could be among the largest foreign direct investments in India’s digital infrastructure space.
The project, with a planned capacity of 1 gigawatt, is expected to anchor the state’s ambitions of building a multi-gigawatt data centre and artificial intelligence ecosystem along the eastern coast.
Also Read: Reliance Industries to set up India’s largest data centre cluster in Andhra Pradesh
Speaking at the foundation stone-laying ceremony, CM Naidu said the work for this started in September 2025, and asked Google to inaugurate the data centre on September 28 this year, inviting Prime Minister Narendra Modi for the same, and assuring all support from the state government.
“Google coming to Vizag is a game-changer for the state, and the state will emerge as the country’s next technology hub. I’m sure Google will not have this kind of premises anywhere else in the world. This ₹1.35 lakh crore investment will make Vizag and India a data centre gateway to the world,” Naidu added.
Andhra Pradesh IT Minister Nara Lokesh said the investment materialised within 13 months of the first engagement with Google.
“Projects that are getting stuck in other states are coming here. This project is a testament to the speed of doing business,” he added.
Also Read: Sun Pharma to acquire Organon for $11.75 billion in India’s biggest pharma deal
Positioned across nearly 600 acres in and around Visakhapatnam, the facility is being developed with partners including AdaniConneX and Airtel Nxtra, and is expected to benefit from upcoming subsea cable connectivity, strengthening the city’s position as a regional data gateway.
Lokesh said the government is looking beyond a single facility to build a broader ecosystem. “We will start calling Vizag a data AI hub. We are working with Google to create the entire ecosystem here,” he said, adding that the wider ecosystem could generate up to 200,000 jobs over time.
Union IT and Railways Minister Ashwini Vaishnaw linked the project to the Centre’s increased allocation to the state. “₹10,134 crore has been allocated to Andhra Pradesh, compared with ₹886 crore earlier for the combined state,” he said.
The state government is pitching Visakhapatnam’s coastal location and planned cable landing infrastructure as key advantages, alongside commitments to ensure green power supply for data centre operations.
Officials said the project is expected to catalyse investments across allied sectors such as power, cooling, server manufacturing and network infrastructure, while attracting AI, cloud and semiconductor companies to the region.
The development comes as states compete to attract hyperscale data centre investments amid rising demand for AI compute capacity and cloud infrastructure. Andhra Pradesh is positioning Visakhapatnam as its anchor city in that race, with Reliance Industries also set to invest ₹1.6 lakh crore to develop a 1.5 GW AI-focused data centre cluster and a captive solar and battery storage system in the city.
The project, with a planned capacity of 1 gigawatt, is expected to anchor the state’s ambitions of building a multi-gigawatt data centre and artificial intelligence ecosystem along the eastern coast.
Also Read: Reliance Industries to set up India’s largest data centre cluster in Andhra Pradesh
Speaking at the foundation stone-laying ceremony, CM Naidu said the work for this started in September 2025, and asked Google to inaugurate the data centre on September 28 this year, inviting Prime Minister Narendra Modi for the same, and assuring all support from the state government.
“Google coming to Vizag is a game-changer for the state, and the state will emerge as the country’s next technology hub. I’m sure Google will not have this kind of premises anywhere else in the world. This ₹1.35 lakh crore investment will make Vizag and India a data centre gateway to the world,” Naidu added.
Andhra Pradesh IT Minister Nara Lokesh said the investment materialised within 13 months of the first engagement with Google.
“Projects that are getting stuck in other states are coming here. This project is a testament to the speed of doing business,” he added.
Also Read: Sun Pharma to acquire Organon for $11.75 billion in India’s biggest pharma deal
Positioned across nearly 600 acres in and around Visakhapatnam, the facility is being developed with partners including AdaniConneX and Airtel Nxtra, and is expected to benefit from upcoming subsea cable connectivity, strengthening the city’s position as a regional data gateway.
Lokesh said the government is looking beyond a single facility to build a broader ecosystem. “We will start calling Vizag a data AI hub. We are working with Google to create the entire ecosystem here,” he said, adding that the wider ecosystem could generate up to 200,000 jobs over time.
Union IT and Railways Minister Ashwini Vaishnaw linked the project to the Centre’s increased allocation to the state. “₹10,134 crore has been allocated to Andhra Pradesh, compared with ₹886 crore earlier for the combined state,” he said.
The state government is pitching Visakhapatnam’s coastal location and planned cable landing infrastructure as key advantages, alongside commitments to ensure green power supply for data centre operations.
Officials said the project is expected to catalyse investments across allied sectors such as power, cooling, server manufacturing and network infrastructure, while attracting AI, cloud and semiconductor companies to the region.
The development comes as states compete to attract hyperscale data centre investments amid rising demand for AI compute capacity and cloud infrastructure. Andhra Pradesh is positioning Visakhapatnam as its anchor city in that race, with Reliance Industries also set to invest ₹1.6 lakh crore to develop a 1.5 GW AI-focused data centre cluster and a captive solar and battery storage system in the city.
