Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday laid the foundation stone for a $15 billion Google-backed Artificial Intelligence (AI) data centre near Visakhapatnam, marking one of the largest technology infrastructure investments in India’s digital economy. The 1 gigawatt (GW) capacity facility is expected to significantly boost the country’s AI cloud infrastructure and large-scale data storage capabilities.

Spread across 600 acres in Tarluvada, Adavivaram and Rambilli villages, the upcoming data centre will be developed in partnership with private players as part of a broader push to build a high-capacity digital ecosystem in the state. The project is positioned as a cornerstone in Andhra Pradesh’s strategy to emerge as a leading data and technology hub, amid surging demand for AI computing power globally.

$15 billion bet on India’s AI infrastructure boom

The scale of the investment underscores the rising importance of hyperscale data centres in powering AI workloads, cloud computing, and digital services. With 1 GW capacity, the facility is expected to rank among the largest AI-focused data centres in India, supporting enterprises, startups, and government platforms with high-performance computing infrastructure.

India’s data centre market is projected to attract investments of over $20-25 billion by 2030, driven by exponential growth in data consumption, 5G rollout, and AI adoption. The Andhra Pradesh project aligns with this trend, positioning the state to capture a larger share of the fast-expanding digital infrastructure market.

600 Acres, multi-gigawatt vision

The state government has outlined an ambitious roadmap to scale this initial investment into a multi-gigawatt ecosystem. Plans are underway to develop a cumulative digital infrastructure capacity of around 6.5 GW over the coming years, leveraging strategic coastal locations, land availability, and policy incentives.

Officials said the cluster approach—anchored by the Google AI data centre—will enable the creation of integrated digital zones, attracting ancillary industries such as semiconductor design, cloud services, and data analytics firms.

Race for data centre dominance intensifies

The move comes amid intensifying competition among Indian states to attract hyperscale data centre investments. States like Maharashtra, Tamil Nadu, and Telangana have already secured major projects from global technology firms, driven by strong connectivity, power availability, and regulatory support.

For Andhra Pradesh, the Google project signals a decisive step toward bridging the gap and building a future-ready digital backbone. With AI expected to contribute up to $500 billion to India’s GDP by 2030, large-scale infrastructure investments such as this are likely to play a pivotal role in decentralising growth and expanding the country’s technology footprint beyond established hubs.