TLDR
- Google will invest $15 billion over five years to build a data center and AI hub in Visakhapatnam, India.
- The facility will feature 1-gigawatt capacity and include subsea cable infrastructure through partnerships with Bharti Airtel and AdaniConneX.
- This investment represents Google’s largest commitment to India, exceeding its previous $10 billion pledge from 2020.
- The AI hub will deploy Google’s complete AI stack including Tensor Processing Units and Gemini models.
- GOOGL shares dropped 1% in premarket trading Tuesday after rising 3.2% the previous session.
Google announced Tuesday it will invest $15 billion to construct a data center and AI hub in Visakhapatnam, India. The investment will span five years through 2030.
This represents Google’s largest financial commitment to India. It surpasses the company’s $10 billion pledge made five years ago.
The announcement took place at Bharat AI Shakti in New Delhi. Google Cloud CEO Thomas Kurian revealed the facility will eventually scale to “multiple gigawatts.”
The project is part of Google’s global AI center network spanning 12 countries. Visakhapatnam will serve as both an AI hub and global connectivity point.
Infrastructure and Partnership Details
Google partnered with Bharti Airtel to develop the data center and cable landing station. The company also joined forces with AdaniConneX for infrastructure setup.
The AI hub will offer Google’s full technology stack. This includes custom Tensor Processing Units designed for local AI processing.
Access to Google’s AI models, including Gemini, will be available. The platform supports building AI agents and applications.
Google Search, YouTube, Gmail, and Google Ads will operate from the hub. Kurian stated the facility would serve India, Asia, and beyond.
Subsea cable infrastructure will connect to Visakhapatnam. The city will function as a landing station for multiple cables and provide connectivity across India.
Market Response and Economic Projections
GOOGL stock fell 1% in premarket trading Tuesday. This reversed Monday’s 3.2% gain following a 2% decline last Friday.
The investment comes as India promotes local technology alternatives. After a 50% tariff on Indian imports in August, Prime Minister Narendra Modi encouraged “swadeshi” or locally-made products.
Indian officials have promoted competitors like Zoho Corporation and MapMyIndia. These moves could create future challenges for U.S. tech companies.
Google commissioned analysis projects the hub will generate $15 billion in U.S. GDP between 2026 and 2030. This stems from increased cloud and AI adoption.
Government Response
Indian IT Minister Ashwini Vaishnaw thanked Google for prioritizing IT professional training. He called AI services “a totally new category in our digital economy.”
Vaishnaw suggested Google consider the Andaman Islands for future expansion. He noted Singapore’s capacity constraints and promised government support.
The location choice follows similar investments in the region. Oracle and Microsoft previously established operations in nearby Hyderabad.
Andhra Pradesh Chief Minister N. Chandrababu Naidu has attracted tech companies to the state. He supported Modi’s recent return to power.
Google operates 14,000 employees in India after 21 years in the country. Delhi and Mumbai already serve as official cloud regions for the company.
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