Google eyes AI infra, drone and server manufacturing investments in India as Big Tech bets deepen

Google is evaluating fresh investments in India spanning artificial intelligence (AI) infrastructure and local manufacturing of servers and drones, signalling a broader push by the US technology giant to deepen its footprint in one of the world’s fastest-growing digital markets.

Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Friday that the company is actively exploring opportunities across emerging technology and hardware ecosystems. “Google is exploring investments in India across AI infrastructure and the manufacturing of servers and drones,” Vaishnaw said in a post on X.

The development comes against the backdrop of Google’s recently announced $15-billion investment plan in Andhra Pradesh’s Visakhapatnam, where the company is building what it has described as a “gigawatt-scale AI ecosystem” — among the largest digital infrastructure projects announced in India so far.

India emerges as AI infrastructure hotspot

Last month, Google formally broke ground on its India AI Hub project in Visakhapatnam in collaboration with AdaniConneX and Nxtra by Airtel. The initiative includes “India’s first gigawatt-scale AI hub comprising three data centre campuses”, according to the company.

The Ministry of Electronics and IT said the project will feature a 1 GW hyperscale AI data centre and span nearly 600 acres across Turluvada, Rambilli and Adavivaram in Andhra Pradesh.

Industry experts view the project as part of a larger race among global hyperscalers to secure AI computing capacity and data infrastructure in India, where demand for cloud computing, generative AI applications and digital services is accelerating rapidly.

At the April 28 groundbreaking ceremony, Vaishnaw said, “India is poised to emerge as major trusted value chain and supply chain partner to the world in electronic manufacturing, driven by strong policy support and visionary leadership.”

Push for local electronics and semiconductor manufacturing

The government is simultaneously intensifying efforts to attract high-value electronics manufacturing into India’s domestic ecosystem. Vaishnaw urged global technology companies, including Google, to manufacture servers, GPUs and semiconductor components locally as India seeks to strengthen its electronics and chip supply chain capabilities.

“The Minister emphasized that India is becoming a trusted partner in semiconductor and electronics production and called upon global technology companies, including Google, to manufacture their servers, GPUs and chips within the country,” the ministry said in a statement.

Calling the Visakhapatnam project transformative, Vaishnaw said the coastal city would evolve into “AI Patnam (AI City)” through advanced digital infrastructure and global investments.

Google, Adani executives pitch India’s AI future

Google Cloud CEO Thomas Kurian described the project as “an inflexion point for the country’s AI-native future,” adding, “Together we are laying the foundation for Viksit Bharat, and opening new doors for economic opportunity nationwide.”

Google Cloud Global Infrastructure Vice President Bikash Koley said the AI Hub would “serve as a foundation for Viksit Bharat 2047 and play a critical role in India’s digital transformation and global AI economy.”

Adani Group Director Jeet Adani called the 1 GW hyperscale AI data centre “a major milestone in India’s AI journey” that would position Visakhapatnam as “a new digital gateway for India.”