Google’s $15 billion AI hub set to transform Visakhapatnam and India’s tech landscape

Google has announced a $15 billion investment to build its largest-ever artificial intelligence (AI) data centre in Visakhapatnam, Andhra Pradesh, marking a major milestone for India’s tech ecosystem.

The project, spread over five years, will be developed in partnership with the Adani Group and Airtel, and will also include the creation of a new international subsea gateway connecting India to Google’s global network of data centres.

Unlike traditional data centres, which mainly host cloud storage and business applications, AI data centres are designed for high-performance computing, handling complex tasks such as generative AI, image and video processing, and other advanced machine-learning applications.

Equipped with cutting-edge GPUs and high-capacity cooling systems, these centres demand vast energy resources and sophisticated infrastructure.

According to Google, the hub is projected to generate $15 billion in economic activity in the US between 2026 and 2030, leveraging American talent, technology, and cloud adoption, while also delivering substantial benefits to India.

Green, high-tech collaboration

AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, will provide green energy services to the hub, ensuring it operates entirely on clean energy. Airtel will support the project by laying multiple international subsea cables, connecting India’s eastern coast to Google’s 2-million-mile global network.

The collaboration also includes new transmission lines, energy storage systems, and clean energy generation, strengthening the resilience of Andhra Pradesh’s power grid.

Andhra Pradesh Chief Minister N Chandrababu Naidu estimates that the centre will directly or indirectly create 1.88 lakh jobs, underscoring the economic promise of AI infrastructure in the region.

India’s data centre ambitions meet challenges

India’s data centre market is valued at $10 billion and is expected to add 795 MW of capacity by 2027, reaching a total of 1.8 GW. Yet the sector faces scrutiny due to its energy intensity and low employment-to-capital ratio.

High power consumption drives up both capital and operational costs, with electricity accounting for up to 65% of operating expenses in these facilities.

While renewable energy is the first choice, its intermittency presents challenges for AI centres, prompting exploration of nuclear power as a reliable, round-the-clock alternative. The Indian government is reportedly open to this approach, following trends in countries like the US, to meet the surging energy demands of AI infrastructure.

With Google’s AI hub, India is positioning itself at the forefront of global AI development, but balancing rapid technological growth with sustainable energy solutions will be critical for the country’s next phase of digital expansion.