Google is set to establish its largest data centre outside the United States in Visakhapatnam, Andhra Pradesh. The US-based technology company plans to invest USD 10 billion (around Rs 88,730 crore) to develop a one-gigawatt data centre cluster in the southern Indian city, according to multiple media reports, including ANI, CNBC-TV18, and The Economic Times (ET), dated October 8, 2025.
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Google's USD 10 Billion Bet on Vizag
According to an official press release by the Andhra Pradesh government, the State Investment Promotion Board (SIPB), chaired by the Chief Minister, announced the approval of Google's hyperscale data centre in Visakhapatnam, representing a nearly USD 10 billion investment—one of the largest digital infrastructure FDI commitments in India.
Massive Economic Impact
The release stated that, according to independent assessments by Access Partnership (2025) and Google's economic modelling, the project is projected to contribute an average of Rs 10,518 crore to the GSDP annually during the initial five years of operations (2028–2032), while supporting approximately 1,88,220 direct and indirect jobs per year across construction, data centre operations, engineering, information technology, and supply chain functions.
Beyond direct operations, Google Cloud's productivity-led impact is expected to add Rs 9,553 crore annually (amounting to Rs 47,720 crore over five years) through digital enablement across the economy. At the national level, comparable digital infrastructure hubs are modelled to unlock up to USD 2.1 trillion in value addition and support 10 million jobs by 2047.
AI City Vizag Branding Announced
The release said the SIPB recognised the project as a game-changer for Andhra Pradesh's IT ecosystem and approved positioning Visakhapatnam as "AI City Vizag."
"This strategic branding mirrors the catalytic effect of early anchor investments that transformed regional technology landscapes, and is designed to anchor a global hub for AI, Cloud, and Data Analytics aligned with Digital India, IndiaAI Mission, and Make in India. This investment underscores global investor confidence in Andhra Pradesh's governance, policy stability, and execution capability," the release reportedly said.
It stated that Andhra Pradesh offers single-window clearances, proactive facilitation, reliable power and water supply, renewable energy integration, and plug-and-play industrial infrastructure—coordinated by the Economic Development Board (EDB) and the Department of Information Technology, Electronics and Communications (ITE&C)—to ensure long-term operational stability for hyperscale projects.
"The data centre will act as a cornerstone for modern economic infrastructure - accelerating AI, cloud computing, IoT, 5G, and e-governance platforms. It is expected to catalyze ancillary sectors such as power, fiber optics, real estate, and telecommunications; drive upgrades in road, power, and fibre connectivity; and enhance State revenues via SGST, electricity duty, and property tax post the incentive phase," the release said, adding that the project is aligned with the state's push for green data centers integrated with renewable energy sources.
To maximise ecosystem benefits, the State will develop a dedicated Emerging Technologies Cluster around the data centre to attract AI and cloud players, accelerating Vizag's rise as India's AI Capital and a global node for digital transformation. The Government will closely coordinate with Google and partners to ensure timely execution, sustainable operations, and inclusive community development, the release said.
Speaking on the occasion, Chief Minister N Chandrababu Naidu said Andhra Pradesh is proud to host one of the world's largest technology investments. "This is not just an investment; it's a vision being realised. Andhra Pradesh is proud to host one of the world's largest technology investments, a testament to our policy strength, governance, and our people's capability. The Google Data Centre in Vizag will anchor our journey towards becoming the AI capital of India and a global hub for digital innovation," he said.
On Friday, Andhra Pradesh Chief Minister announced that Google will invest Rs 88,000 crore over the next three years in data centres and artificial intelligence projects in Visakhapatnam (Vizag), according to an ET report dated October 11, 2025.
Calling it the "single largest investment" since India's financial reforms, the Chief Minister described the move as a "gamechanger,". "We have finalised Google data centres and AI projects. After the introduction of financial reforms, a single investment of nearly USD 10 billion (Rs 88,000 crore) will be made in Vizag over the coming three years," Naidu reportedly said while addressing a meeting on the sidelines of inaugurating private projects.
The investment will be made by Google subsidiary Raiden Infotech India Ltd, which plans to develop three campuses across Tarluvada, Adavivaram, and Rambilli in Vizag.
The Chief Minister expressed optimism about the future, saying India will emerge as the top economy by 2047, Andhra Pradesh as the leading state, and the Telugu community as the number one community in the country.
Also Read: Meta Unveils 50,000 Km Waterworth Subsea Cable Project to Boost AI and Global Connectivity
Meta Selects Visakhapatnam for Landing Site
In another development in Vizag (Visakhapatnam), Meta Platforms has chosen Mumbai and Visakhapatnam as the landing sites for the India leg of its multibillion-dollar undersea cable project, Waterworth, according to an ET report by Himanshi Lohchab dated October 10, 2025, citing people familiar with the plans.
Meta hired Sify Technologies as its landing partner in India under an estimated USD 5 million contract, sources were quoted as saying. Google has also partnered with Sify for the India landing of its USD 400 million Blue-Raman subsea cable.
Spanning over 50,000 kilometres, Waterworth is set to become the world's longest subsea cable system, connecting the US, India, Brazil and South Africa.
Meanwhile, Andhra Pradesh's Information Technology Minister Nara Lokesh shared in a post on X on October 11, 2025, that he will be "laying the foundation for Sify Technologies' 550 MW Data Centre" in Visakhapatnam on Sunday, October 12. "This landmark project will bring cutting-edge infrastructure, thousands of jobs, and global tech partnerships. This will putting AP firmly on the digital innovation map," he added.
TCS Joins the AI Infrastructure Race
In another development related to data centres, Indian information technology services company Tata Consultancy Services (TCS) announced plans to invest in building data centres. While announcing its Q2 FY26 results on October 9, 2025, the company said it is on "course to become the world's largest AI-led technology services company" and plans to establish a "new business entity to build world-class AI infrastructure—a 1 GW capacity AI data centre in India."
The company plans to build a sovereign, co-location AI data centre of up to 1 GW capacity in India over the next five to seven years through a new subsidiary.
Announcing the strategic investments, K Krithivasan, Chief Executive Officer and Managing Director, said, "We are on a journey to become the world's largest AI-led technology services company. Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments, including the building of a world-class AI infrastructure business, demonstrate our commitment to this transformation."
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said, "We delivered strong growth momentum led by Data, Cloud and AI powered enterprise transformation. Our customer engagements are focused on rapid value realisation to deliver speed, efficiency and growth. TCS' AI Hackathon set a new benchmark – is the largest, most diverse and innovative AI-first culture building initiative. Our new AI and Services Transformation unit will further scale and integrate our efforts."
During the company's Q2 FY26 investor call on October 9, Krithivasan said TCS expects to invest approximately USD 6–7 billion to build 1 GW of data centre capacity over the next five to seven years. "Our calculation is that for every 150 megawatts (MW) of computing power, we would require about a billion dollars," he said.
He further explained that the project, which is close to India's overall data centre capacity, will be developed in phases, with funding structured as a mix of equity and debt.
"TCS announced plans to build AI and sovereign data centre with a total potential investment of USD 6–7 billion over 5–7 years (initial phase: USD 1 billion for 150 MW capacity), to provide passive colocation services. The data centre targeted clientele includes Indian enterprises, deep tech and hyperscalers who wish to train and inference models in Indian interfaces, along with government entities. The venture aligns with India's data sovereignty push, and is a step towards TCS's aspirations of expanding its coverage across the entire AI stack, from infra layer to apps, albeit return ratios dilutive," ICICI Direct noted in its research report update dated October 10, 2025.
AI and Sovereign Data Centres
The report added: "The Board has approved the incorporation of a wholly owned subsidiary in India to set up multiple AI and sovereign data centres (a passive colocation data centre with a capacity of up to 1 GW, where clients bring their own compute and storage) with an investment of about USD 1 billion to set up 150 MW of capacity which shall amount to a total outlay of around USD 6- 7 billion (Rs 55,000–57,000 crore) in a phased manner over 5-7 years."
"The investment will be a mix of equity and debt, and the company will also look for external financial partners for this investment. The new entity will focus on providing infrastructure and technology-enabled services, marking a strategic move to strengthen TCS's capabilities in advanced computing and data sovereignty amid rising enterprise demand for secure, AI-driven digital infrastructure."
"Potential clients include – pure play AI service providers, deep tech companies, hyperscalers and government of India. It is expected to start contributing to the topline in 18-24 months and be ROCE dilutive due to the heavy capex requirements of the initiative., albeit, the quantum of impact will be function of how much self-fund and what proportion is done through investors/partnerships," the ICICI report said.
Global AI Footprint Expansion
TCS announced on October 10 the launch of an Artificial Intelligence (AI) Experience Zone and Design Studio in London and plans to create 5,000 new jobs across the UK over the next three years. The London studio is the second design hub established by TCS, following the opening of the New York Design Studio in September.
The business delegation accompanying UK Prime Minister Keir Starmer visited the TCS Banyan Park campus in Mumbai on Thursday.
Jason Stockwood, Minister for Investment, United Kingdom, said, "I was delighted to visit the Tata Consultancy Services (TCS) campus in Mumbai to see their technological innovation first-hand. For nearly 150 years, Tata Group has reflected their leadership in entrepreneurship and philanthropy. Now, as we celebrate a landmark Prime Ministerial visit to India, we have reaffirmed the pledge between our two economies to maximise on the trade deal we signed in July. As a valued investor for the UK, Tata Group and its companies like TCS are central to this mission, which ultimately will create jobs, put money in people's pockets, and deliver economic growth across both countries."
