Andhra govt to sign Google deal for AI hub, 1-GW data centre in Vizag

Andhra Pradesh inks pact with Google for a ₹80,000-crore 1GW AI data centre in Vizag, expected to create 1.8 lakh jobs and anchor India's first AI City project

The government of Andhra Pradesh will sign an agreement with Google on Tuesday to develop a one gigawatt (Gw) hyperscale data centre campus in Visakhapatnam, advancing a near $10 billion investment that anchors “AI City Vizag”.

 

This will be one of the largest such projects for Google in Asia, which will see the US tech giant deploy its full AI stack to help accelerate AI-driven transformation across India.

 

“Andhra Pradesh signs on Tuesday, what the future will remember - our 1 Gw Google data centre in Vizag, the first step in making AI City Vizag India’s digital powerhouse. It is a transformative project for the future of Andhra Pradesh,” said state Industries Minister Nara Lokesh.

 

The new AI hub will combine powerful AI infrastructure, data centre capacity, new large-scale energy sources, and an expanded fibre-optic network, all in one place, making Vizag and Andhra Pradesh uniquely positioned in India to drive India’s AI Transformation.

 

The signing will outline the roadmap for India’s first AI hub anchored by a 1 Gw data centre in Vizag, connected to Google’s global network via resilient subsea and terrestrial systems and designed with clean-energy integration.

 

State-cited assessments project an average annual GSDP contribution of ₹10,518 crore during 2028–2032 and support for about 188,220 jobs per year, alongside Google Cloud–enabled productivity spillovers of ₹9,553 crore annually, totalling ₹47,720 crore over five years. 

 

The project was approved by the State Investment Promotion Board chaired by the state chief minister, with streamlined facilitation through single-window clearances, reliable utilities, renewable integration, and plug-and-play infrastructure led by the Economic Development Board and the Department of Information Technology, Electronics and Communications.

 

The deal will be signed between the Andhra Pradesh Information Technology Department and Google in Delhi in the presence of Union Finance Minister Nirmala Sitharaman, Union Information & Broadcasting minister Ashwini Vaishnaw, and Chief Minister N Chandrababu Naidu.

 

Senior Google leadership, including Thomas Kurian, chief executive officer, Google cloud; Bikash Koley, vice-president, Global Infrastructure; and Karan Bajwa, president, Asia-Pacific Google Cloud, will be representing the company.

 

The chief minister is expected to meet Prime Minister Narendra Modi to extend an invitation to attend two key upcoming events being organised by the state, the ‘Super GST – Super Savings’ programme proposed to be held in Kurnool, which aims to highlight the union and state governments' initiatives in promoting financial prudence and efficiency with the latest next-gen GST reforms.

 

The other would be the ‘CII Partnership Summit 2025’, scheduled to be held in Visakhapatnam on November 14 and 15. The summit is expected to bring together industry leaders, investors, and policymakers from across the globe to explore new avenues of collaboration and investment in Andhra Pradesh.