Google to invest $10 billion in AI data center project in India

Google will invest $10 billion to build new data centers in South India, according to local officials, making it one of its biggest investments in the South Asian country as tech giants scramble to meet growing demand for artificial intelligence.

Nara Lokesh, Minister of Human Resources Development of the Indian state of Andhra Pradesh, announced on Monday that Google and his government will sign a memorandum of understanding for a 1 gigawatt project in the state with an investment of $10 billion.

Agreement – It will be signed on Tuesday It comes after “a year of intense discussions and relentless efforts” and “this is just the beginning,” Lokesh said. to mail on social media platform X.

Economic Times from India previously reported It was stated that the investment will be made by Google’s Indian subsidiary Raiden Infotech, which plans to develop three campuses in the city of Visakhapatnam.

according to someone else report State officials plan to continue doubling down on such projects and significantly increase the state’s computing capacity over the next three years, ET reported on Tuesday.

As AI services become increasingly popular, companies are increasing their infrastructure investments to keep up with the growing global demand for cloud services.

As part of its second-quarter earnings call in July, Google raised its 2025 capital spending forecast to $85 billion from $75 billion in February, citing “strong and growing demand for our cloud products and services.”

That same month, the company also announced plans to invest $25 billion in data center and AI infrastructure in states across the largest U.S. power grid over the next two years.

India is increasingly attracting multinational players: Microsoft And AWSInvesting in the country’s cloud and artificial intelligence infrastructure.