Google will invest $6 billion to establish a 1-gigawatt hyperscale data centre in Visakhapatnam, Andhra Pradesh, marking its first such facility in India, according to government sources. The investment includes $2 billion dedicated to developing renewable energy infrastructure to power the centre, positioning the project as one of the largest of its kind in Asia.

The new facility will significantly expand Google’s data infrastructure footprint in the Asia-Pacific region, joining existing projects in Singapore, Malaysia, and Thailand. Once operational, the Visakhapatnam data centre will be Google’s largest in Asia in terms of both capacity and capital outlay.

Located in the coastal city of Visakhapatnam, the data centre will benefit from proximity to future undersea cable landing stations, which the Andhra Pradesh government plans to establish as part of a larger digital connectivity push. The state is aiming to build three cable landing stations to create a network capacity twice that of Mumbai, India’s current data infrastructure hub.

State officials view the project as a breakthrough in Andhra Pradesh’s post-2014 investment strategy. After the bifurcation that created Telangana and saw Hyderabad, the state’s former capital and tech hub, go to the new state, Andhra Pradesh, has aggressively pursued high-tech infrastructure investments to revive economic momentum.

Information Technology Minister Nara Lokesh, who is currently in Singapore for talks with investors, stated that the state has already secured 1.6 GW in data centre projects and aims to reach 6 GW within the next five years. “We’re creating an ecosystem that combines data infrastructure, energy capacity, and global connectivity,” he said during discussions with business leaders.

The renewable energy component of Google’s investment is a key aspect of the project. As data centres are highly energy-intensive, sustainable power sources are critical to meet global ESG standards. The state anticipates needing up to 10 GW in power generation capacity to support the planned expansion of its data industry, and Google’s renewable energy commitment is expected to be a model for future investments.

This development also coincides with Google’s announcement that its Gemini 2.5 Flash model will now be processed locally in India. The move reflects a broader trend toward data localisation, in line with India’s upcoming data protection legislation, which is set to prioritise domestic processing of personal and sensitive data.

If finalised, the project will bring Google into closer competition with cloud infrastructure leaders such as Amazon Web Services and Microsoft, both of which have ramped up investments in India. It will also raise India’s national data centre capacity significantly above its current 1.2 GW, as estimated by Colliers in April 2025.

The Andhra Pradesh government is expected to formally announce the Google project in October, alongside other upcoming data centre investments.

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