Google to spend $15 billion in India to build largest AI hub outside the US

NEW DELHI: American tech giant Google on Tuesday made its largest-ever investment in India to date as it committed to pump in a fresh $15 billion (approximately Rs 1.3 lakh crore) to set up an artificial intelligence (AI) hub in Visakhapatnam, Andhra Pradesh, including a gigawatt-scale compute capacity.The mega investment comes as the US and India work out a trade deal amidst the tariff tensions between the two countries.The investment will be made over a five-year period (2026-30), with the AI hub bringing in powerful AI infrastructure, data center capacity, new large-scale energy sources and an expanded fiber-optic network, all in one place. The new investments come beyond the $10 billion India Digitisation Fund that the company had announced in 2023.Sundar Pichai, CEO of Google, spoke to Prime Minister Narendra Modi as the company announced the investments at the Bharat AI Shakti event here. “Great to speak with India PM Modi to share our plans for the first-ever Google AI hub in Visakhapatnam, a landmark development. This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure. Through it we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country,” Pichai said on X while giving details about his conversation.

PM Modi acknowledged the positive impact of the investment that, he said, will contribute towards the goal of ‘Viksit Bharat’ and strengthening India’s position as a global tech leader. “Delighted by the launch of the Google AI Hub in Visakhapatnam… It will be a powerful force in democratizing technology. It will also ensure AI for All, delivering cutting-edge tools to our citizens, boosting our digital economy and securing India’s place as a global technology leader!”Google is creating the infrastructure in partnership with the Adani group. Chairman Gautam Adani said on X that the effort will see the creation of India’s largest AI data centre campus engineered specifically for the demands of artificial intelligence. “This facility will house the TPU (Tensor Processing Unit)and GPU (Graphics Processing Unit)-based compute power required for deep learning, neural network training, and large-scale AI model inference and create an ecosystem that accelerates AI-driven solutions for India's most critical sectors - from healthcare and agriculture to logistics and finance.”Google said that the initiative creates substantial economic and societal opportunities for both India and the US, while pioneering a generational shift in AI capability.IT Minister Ashwini Vaishnaw said the digital infrastructure will go a long way in meeting the goals of the ambitious India AI mission. He also underlined the need for skilling to insulate jobs from the impact of AI.“I would like the industry to help re-skill and upskill our IT professionals in a major way… AI services are emerging as a totally new category in our digital economy, and we look forward to this new facility being used for developing our youth for AI services.”Apart from the Adani group, Bharti Airtel has also partnered Google for the AI hub.

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Airtel and Google will jointly establish the purpose-built data center in Visakhapatnam, as well as a state-of-the-art Cable Landing Station (CLS) to host Google’s new international subsea cables that will join its extensive global terrestrial and subsea infrastructure. Airtel will also create a robust intra-city as well as inter-city fibre network as a part of this project,” Gopal Vittal, Vice Chairman and MD of Airtel said.The AI hub will also deliver high-performance and low-latency services that businesses and organisations need to build and scale their own AI-powered solutions, accelerate research and development, and ultimately help India secure its place as a global leader in the AI-driven future.When operational, the new data center campus will join Google’s network of existing AI data centers that spans 12 countries. It will benefit from technology developed by Google’s R&D centers in Bengaluru, Hyderabad and Pune, including the design and development of crucial software and hardware innovations.Construction of a new international subsea gateway, including multiple international subsea cables to land in Visakhapatnam, will help connect to Google’s more than two million miles of existing terrestrial and subsea cables. This will establish Visakhapatnam as an AI and connectivity hub that not only serves India but the rest of the world. It will help provide route diversity to complement existing subsea cable landings in the Mumbai and Chennai areas.The project is expected to create 5,000–6,000 direct jobs and 20,000–30,000 total jobs in Andhra Pradesh, while bringing essential manpower, infrastructure, power, and cooling facilities to Visakhapatnam.Andhra Pradesh CM N Chandrababu Naidu said the investment marks a new chapter in the country’s digital transformation journey. “We are proud to host India’s first truly gigawatt-scale data center and Google’s first AI hub in India, which is a testament to our shared commitment to innovation, AI adoption, and long-term support for businesses and startups in the state.”