Google is reportedly set to make its largest direct investment in India’s digital economy, with a commitment of $10 billion (approximately Rs 8,730 crore) for establishing a mega 1 GW-capacity data centre cluster in Visakhapatnam, Andhra Pradesh. The data centre cluster is said to be the largest one that Asia has ever seen.
According to a report by The Economic Times, the ambitious project will feature three distinct campuses spread across Adavivaram and Tarluvada villages in Visakhapatnam district, and Rambilli village in the neighbouring Anakapalli district. Once completed, this Visakhapatnam cluster will be identified as Asia’s largest data centre region. The facilities are slated to become fully operational by July 2028.
Google invests $10 billion in Vizag
Google’s huge infrastructure investment in India extends beyond the data centres themselves. The $10 billion investment will cover the construction of three high-capacity submarine cables, dedicated cable landing stations, extensive metro fibre networks, and other advanced telecommunications infrastructure.
The project is a direct result of Andhra Pradesh’s strategy to become a global hub for data infrastructure. Chief Minister N. Chandrababu Naidu and Google signed a memorandum of understanding in December 2024, shortly after the new administration took office. The state has since pushed for amendments to the IT and Copyright Acts to facilitate the development of “data cities.”
The formal framework of the agreement is expected to be finalised soon. Andhra Pradesh’s Investment Promotion Board, led by CM Naidu, is expected to approve the proposal soon, with more details expected to be shared during a meeting between Google’s leadership and State IT and Electronics Minister Nara Lokesh in New Delhi on October 14.
Local legal factors are a deterrent
However, legal hurdles have stalled progress on the Google project. Based on a report from TOI, a court case filed by a proxy — allegedly for an influential figure from the previous regime — challenges the acquisition on behalf of D-patta farmers, including a deceased individual’s name, raising suspicions of deliberate delays.
Chief Minister N Chandrababu Naidu, during a recent Vizag visit, expressed frustration over these tactics and ordered district officials to resolve issues swiftly, vowing strict action against obstructors. Bheemili MLA Ganta Srinivasa Rao echoed claims of political conspiracies but affirmed the project’s imminent grounding despite the bumps.