Despite growing “swadeshi” tech sentiment, Google unveils its largest India investment to date with a multi-gigawatt AI hub aimed at powering domestic and global digital infrastructure.
A $15B Bet on India’s AI Future
Google announced a landmark $15 billion investment to build a 1-gigawatt AI and data center hub in Visakhapatnam, Andhra Pradesh, positioning India as a critical node in its global AI network.
- The investment will span the next five years, through 2030, and represents Google’s largest-ever investment in India.
- The initiative aims to support AI innovation, digital services, and cloud infrastructure, while laying the groundwork for a broader pan-Asian connectivity push.
“We see this hub not just serving India but, from India, serving Asia and other parts of the world,” said Google Cloud CEO Thomas Kurian.
A Strategic Investment Amid Political Headwinds
The move comes as India’s government promotes tech self-reliance, encouraging adoption of homegrown alternatives to U.S. platforms like Google Cloud, Gmail, and Maps.
- Prime Minister Narendra Modi has backed “swadeshi” (made-in-India) initiatives, especially after President Donald Trump’s 50% tariff on Indian imports in August.
- Local firms like Zoho, MapMyIndia, and Arattai have gained government support as alternatives to Google’s services.
Despite this, Google remains deeply embedded in India’s tech ecosystem:
- Operating in India for 21 years
- Employing 14,000 people
- Hosting cloud regions in Delhi and Mumbai
Why Visakhapatnam?
Google’s decision to base the hub in Visakhapatnam follows strategic cues:
- The port city offers geographic advantage for global cable connectivity.
- It benefits from political backing by Andhra Pradesh Chief Minister N. Chandrababu Naidu, a key Modi ally and long-time proponent of digital infrastructure.
- The region has previously attracted Oracle and Microsoft, further cementing its status as a tech-forward hub.
Full-Stack AI and Cloud Infrastructure
Google’s AI hub in Visakhapatnam will include:
- Custom Tensor Processing Units (TPUs) for local AI workloads
- Access to its Gemini AI models and development platform
- Support for core services like Google Search, YouTube, Gmail, and Ads
- A multi-gigawatt scale roadmap to expand AI infrastructure across the region
Kurian said the hub will offer “a full stack of solutions” tailored for Indian developers, enterprises, and researchers.
Subsea Cables and India’s Digital Backbone
To boost global connectivity, Google also announced plans to bring subsea cable infrastructure to Visakhapatnam:
- Partnering with Bharti Airtel for the cable landing station
- Collaborating with AdaniConneX to build out data center infrastructure
- Aiming to create a digital backbone that links India’s metros and connects to global traffic routes
Indian IT Minister Ashwini Vaishnaw praised the move, suggesting Google also consider:
- The Andaman Islands as a future hub to relieve Singapore’s cable congestion
- A cross-border connection between Visakhapatnam and Sittwe (Myanmar) to enhance Northeast India’s connectivity
The Bigger Picture: India’s AI Ambitions
The new hub directly supports India’s national AI mission, focusing on:
- Digital transformation
- Domestic cloud independence
- AI innovation and training
Vaishnaw called the AI hub “a very important contribution” to India’s goals of positioning itself as a global AI leader while balancing foreign investment with domestic control.
