Google’s Expanding Footprint in India
Google, the global tech behemoth and a subsidiary of Alphabet Inc., has long seen India as a key growth market, investing in digital infrastructure, cloud services, AI capabilities, and digital skilling initiatives. With a growing user base and rising demand for data services, India’s importance in Google’s global strategy has surged. In a monumental step, Google is now set to invest $6 billion in building a 1-gigawatt data centre and associated renewable energy infrastructure in Visakhapatnam, Andhra Pradesh. This development signals not only a massive technological upgrade but also a diplomatic and economic win for India, and particularly for the state’s ambitions in the post-bifurcation era.
The Visakhapatnam Data Centre: A Game-Changer for India and Asia
Planned for construction in Visakhapatnam—a major port city on India’s eastern coast—the new data centre will be Google’s largest in Asia in terms of both capacity and financial investment. The project, once operational, will significantly boost India’s cloud computing and digital storage capacity, putting it on par with major data hub regions like Singapore and Malaysia.
Of the total investment, $2 billion will be directed toward building renewable energy sources to power the facility, highlighting Google’s commitment to sustainability. This move aligns with global trends where major tech firms are integrating green energy into their data infrastructure to reduce carbon footprints.
Strategic Vision: Andhra Pradesh’s Push to Become India’s Data Capital
This mega investment is also a landmark moment in Andhra Pradesh’s economic revival following its bifurcation in 2014, when the newly formed state lost Hyderabad—the original IT and business powerhouse—to Telangana. Determined to build a new economic engine, Andhra Pradesh has aggressively pursued infrastructure-led growth, especially in high-tech sectors like data storage and renewable energy.
According to Andhra Pradesh IT Minister Nara Lokesh, who is currently in Singapore courting further investment, the state aims to install 6 GW of data centre capacity over the next five years, from nearly zero today. Already, 1.6 GW in projects—including a 550-MW facility by Sify Technologies—have been finalized, and are expected to become operational within two years.
This alone would surpass the current national data centre capacity of 1.4 GW, demonstrating Andhra Pradesh’s rapid rise as a digital infrastructure powerhouse.
Infrastructure Expansion: Connectivity and Energy at the Core
To support the data boom, Andhra Pradesh is also planning to establish three new cable landing stations in Visakhapatnam, a strategic move that will enhance international data flow and reduce latency. Lokesh noted that the goal is to create twice the cable network capacity currently available in Mumbai, India’s existing data and telecom hub.
Cable landing stations are critical nodes that connect undersea internet cables to terrestrial networks, making them essential for high-speed data centres.
On the power front, the government anticipates the electricity demand from the sector to reach 10 GW in the next five years. While a large part of this will come from renewable sources, a minor share will rely on coal-based plants to ensure uninterrupted power, reflecting the practical needs of an energy-intensive industry.
Economic and Employment Impact
Beyond technological transformation, Google’s Visakhapatnam project is expected to be a major employment generator. While highly automated, data centres stimulate job creation in several auxiliary sectors such as construction, electrical infrastructure, operations, cybersecurity, cooling systems, and maintenance. Additionally, indirect employment through logistics, housing, and services is expected to surge in and around Visakhapatnam.
The presence of such a global giant could also catalyze a startup and innovation ecosystem in the region, inviting further investment and elevating Andhra Pradesh’s profile on the global tech map.
A Win-Win for Google and India
Google’s $6 billion commitment is not just an investment in infrastructure—it’s a long-term bet on India’s digital economy. For Andhra Pradesh, this marks a significant turning point, offering a roadmap for how strategic planning, global partnerships, and digital infrastructure can combine to power economic revival. As the data centre takes shape, it promises to reshape not just the technological landscape but also the socio-economic fabric of southern India.
(With agency inputs)
