Andhra CM Naidu lays foundation for $15 billion Google AI data centre in Vizag
The project, with a planned capacity of 1 gigawatt, is expected to underpin the state’s goal of building a multi-gigawatt data center and artificial intelligence ecosystem along the east coast.
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Speaking at the groundbreaking ceremony, CM Naidu said that the work for this has started in September 2025 and asked Google to open the data center on September 28 this year, also invited Prime Minister Narendra Modi and assured all support from the state government.
“Google’s arrival in Vizag will be a game changer for the state and the state will emerge as the next technology hub of the country. I am confident that Google will not have such facilities anywhere else in the world. This investment of Rs 1.35 lakh crore will make Vizag and India a data center gateway to the world,” Naidu added.
Andhra Pradesh IT Minister Nara Lokesh said the investment was implemented within 13 months of the first meeting with Google.
“Projects that are stuck in other states are coming here. This project is an indicator of the speed of doing business,” he added.Also Read: Sun Pharma to acquire Organon for $11.75 billion in India’s largest pharma deal
Located on nearly 600 acres of land in and around Visakhapatnam, the facility is being developed with partners such as AdaniConneX and Airtel Nxtra and is expected to benefit from the upcoming undersea cable connectivity, strengthening the city’s position as a regional data gateway.
Lokesh said the government is looking beyond a single facility to create a broader ecosystem. “We will start calling Vizag a data AI hub. We are working with Google to create the entire ecosystem here,” he said, adding that the larger ecosystem could create up to 200,000 jobs over time.
Union IT and Railways Minister Ashwini Vaishnaw attributed the project to the Centre’s increased allocation to the state. “Andhra Pradesh has been allocated ₹ 10,134 crore, compared to ₹ 886 crore earlier for the union state,” he said.
The state government cites Visakhapatnam’s coastal location and planned cable landing infrastructure as key advantages, along with its commitments to provide green power supply for data center operations.
The project is expected to catalyze investments in allied sectors such as power, cooling, server manufacturing and network infrastructure, as well as attract artificial intelligence, cloud and semiconductor companies to the region, officials said.
The development comes as states compete to attract hyperscale data center investments amid growing demand for AI computing capacity and cloud infrastructure. Andhra Pradesh positions Visakhapatnam as the main city in this race; Reliance Industries is also set to invest ₹ 1.6 lakh crore to develop a 1.5 GW AI-focused data center cluster and a captive solar and battery storage system in the city.
