Google to invest $15 billion in Vizag AI hub; Sundar Pichai calls it 'landmark move'

Google CEO Sundar Pichai on Tuesday (October 14) announced that he had spoken with Prime Minister Narendra Modi to share details of the company’s plans for its first-ever Artificial Intelligence (AI) hub in Visakhapatnam, Andhra Pradesh. The project marks Google’s largest-ever investment in India and will be developed in partnership with the Adani Group.

The tech giant unveiled a one-gigawatt-scale data centre and AI base in Visakhapatnam, its largest AI hub outside the United States, and committed to investing $15 billion in India over the next five years.

The announcement was made during ‘Bharat AI Shakti’, a Google-hosted event in New Delhi.

Also Read: TCS partners with C-DAC to build India's sovereign cloud

Pichai hails AI hub in Vizag

Calling it a "landmark development", Pichai said the hub will combine large-scale compute capacity, an international subsea gateway, and significant energy infrastructure.

“Great to speak with India PM Narendra Modi to share our plans for the first-ever Google AI hub in Visakhapatnam, a landmark development. Through it we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country,” Pichai posted on X, shortly after an agreement was signed between Google and the Andhra Pradesh government.

The company said the initiative aligns with the Indian government’s ‘Viksit Bharat 2047’ vision to expand AI-driven services and represents a major step in strengthening India–US digital cooperation.

“This initiative creates substantial economic and societal opportunities for both India and the United States — while pioneering a generational shift in AI capability,” Google said in an official statement.

Also Read: H-1B shock meets AI squeeze: How Indian IT may rewrite its playbook

'Landmark investment in India’s digital future'

Thomas Kurian, CEO of Google Cloud, said the new centre would transform Visakhapatnam into a global hub for AI innovation, serving India and the broader Asian region.

“This gigawatt-scale AI hub will house data locally and help power AI-driven solutions across sectors,” Kurian said, adding that the investment reaffirms Google’s long-term commitment to India’s digital future through sustainable, locally integrated infrastructure.

He described the AI hub as a “landmark investment in India’s digital future,” enabling businesses to innovate faster and driving inclusive growth.

“This partnership reflects our shared commitment to the Indian and US governments to harness AI responsibly and drive transformative impact for society,” he added.

'New chapter' in India's digital transformation

The event saw the participation of Union Ministers Nirmala Sitharaman and Ashwini Vaishnaw, Andhra Pradesh Chief Minister N. Chandrababu Naidu, and State IT Minister Nara Lokesh.

Vaishnaw thanked Google for its investment, calling the project a major step toward achieving India’s AI goals. “This digital infrastructure will go a long way in meeting the goals of our India AI vision. AI services are emerging as a new pillar of our digital economy,” he said.

Chief Minister Chandrababu Naidu hailed the initiative as a “new chapter” in India’s digital transformation, aligning with the country’s 2047 development vision.

“We are proud to host India’s first gigawatt-scale data centre and Google’s first AI hub in India. It reflects our shared commitment to innovation and AI adoption,” he said.

Naidu also credited Prime Minister Modi’s leadership for bringing the project to India. “Prime Minister Modi was clear that Google has to come to India for this. We brought Microsoft to Hyderabad earlier, and today, Google is coming to Visakhapatnam. With this, we can achieve the vision of Viksit Bharat 2047 using AI,” he added.

Also Read: AI can add up to $600 bn to India's GDP by 2035: NITI Aayog

India's new AI powerhouse

Finance Minister Nirmala Sitharaman described the collaboration as “a reflection of harmony between progressive policymaking and dynamic governance,” saying it demonstrates India’s readiness to lead the next wave of technological advancement.

Meanwhile, IT Minister Nara Lokesh said the partnership highlighted India’s growing stature on the global tech stage.

“What you see is India at its best — the state and central governments working together to lead from the front. This is not just Andhra Pradesh’s moment, but India’s,” he said.

The deal between Google and the Andhra Pradesh government serves as the anchor project for the AI City Vizag initiative, which includes a 1 GW hyperscale data centre campus aimed at positioning Visakhapatnam as India’s new AI powerhouse.