Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday said the $15-billion Artificial Intelligence (AI) data centre near Visakhapatnam is the beginning of a “new technological chapter” for the state. He said the entry of Google marks a transformational moment for the state as he laid the foundation stone for the new project.

“The proposed $15-billion investment will significantly strengthen Andhra Pradesh’s position in the global technology landscape,” he said.

Emphasising the scale and significance of the project, Naidu added that the AI data centre would place India firmly on the global AI map. 

“The AI data centre will establish India as an important hub in the global artificial intelligence ecosystem and Google, which began as a search engine, is now becoming a growth engine for India,” he added.

The largest AI-focussed data centre in the country

Spread across 600 acres in Tarluvada, Adavivaram and Rambilli villages, the proposed 1 gigawatt (GW) facility is expected to be among the largest AI-focussed data centres in the country, boosting cloud infrastructure and high-performance computing capacity.

Drawing a comparison with Hyderabad’s transformation, Naidu said North Andhra is poised for a similar trajectory. 

Comparing the development to the rise of Cyberabad, he maintained that North Andhra is entering a similar phase of transformation driven by large-scale digital infrastructure. 

The Chief Minister also stressed the need for timely execution and a long-term vision for the project.

Calling for timely execution, he urged all stakeholders, including partner organisations, to complete the project by September 2028, assuring full cooperation from the state government. 

He also expressed confidence that Visakhapatnam will emerge as a global AI and data gateway supported by strong infrastructure, energy availability, and investment momentum.

Highlighting governance benefits, he noted that advanced technologies would play a larger role in public administration.

Race for data centre investments heats up

The development comes at a time when competition among states to attract hyperscale data centre projects is picking up pace. Maharashtra, Tamil Nadu and Telangana have already drawn significant investments from global technology firms, backed by reliable power supply, strong connectivity and supportive policy frameworks.

For Andhra Pradesh, the Google-backed project marks an important step in closing that gap and building a robust digital backbone. With AI projected to contribute up to $500 billion to India’s GDP by 2030, such large-scale infrastructure investments are expected to play a key role in spreading growth beyond traditional tech hubs and strengthening the country’s overall digital ecosystem.