Google Pumps $15 Billion Into India for Record-Breaking Data Center Hub

• Alphabet Inc. (GOOGL) is investing $15 billion over five years to build its largest AI hub outside the U.S. in Visakhapatnam, India, via subsidiary Raiden Infotech, featuring three campuses for enhanced cloud capacity.
• Andhra Pradesh officials estimate the 1-gigawatt project at $10 billion, marking the start of expanded collaborations after a year of negotiations, with plans to scale state computing resources over three years.
• This aligns with Google’s raised 2025 capex forecast to $85 billion and a $25 billion U.S. investment, amid growing AI demand drawing competitors like Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN) to India.

Alphabet Inc. (GOOGL), through its Google Cloud division, is committing $15 billion over the next five years to establish what will become its largest artificial intelligence hub outside the United States, located in southern India. This ambitious project, centered in Visakhapatnam, Andhra Pradesh, underscores the accelerating global race to build infrastructure capable of supporting the explosive growth in AI-driven cloud computing demands. Google Cloud CEO Thomas Kurian highlighted the initiative during a Tuesday event, emphasizing its role in expanding the company’s capacity to deliver advanced AI services to enterprises worldwide.

The development marks a pivotal expansion for Google in one of the world’s fastest-growing digital markets. Developed by Google’s Indian subsidiary Raiden Infotech, the hub will feature three dedicated campuses designed to handle intensive AI workloads. Local officials, including Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, have described the 1-gigawatt facility as the result of a year of intensive negotiations, positioning it as the starting point for broader collaborations. Lokesh noted on the social media platform X that this investment, valued at $10 billion by state estimates, signals the onset of sustained efforts to transform the region into a premier destination for technology infrastructure.

This move aligns with Google’s broader strategy to bolster its cloud infrastructure amid surging demand. In its second-quarter earnings report from July, the company revised its 2025 capital expenditures forecast upward to $85 billion, an increase from the prior $75 billion projection, driven primarily by the need to scale Cloud products and services. Complementing this, Google announced a separate $25 billion investment in data centers and AI infrastructure across U.S. states over the next two years, targeting the nation’s largest electric grid to ensure reliable power for high-compute operations.

India’s appeal as a hub for such investments is evident in its burgeoning ecosystem, where supportive policies and a vast talent pool are drawing major players. Multinational firms like Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN), through its AWS division, have similarly ramped up commitments to local cloud and AI facilities, capitalizing on the country’s projected tripling of data center capacity in the coming years. Andhra Pradesh officials have signaled plans to double down on these initiatives, aiming to significantly enhance the state’s computing resources over the next three years. As AI adoption permeates industries from healthcare to finance, these investments reflect a calculated response to the need for low-latency, scalable infrastructure that can process petabytes of data efficiently.

Google’s focus on India not only addresses immediate capacity constraints but also positions the company to tap into a market where AI integration is accelerating across sectors. With hyperscale data centers becoming essential for training large language models and deploying generative AI tools, this hub will enable Google to serve regional clients with reduced costs and faster response times, fostering deeper partnerships in a landscape where cloud revenues continue to outpace traditional advertising growth. As global enterprises prioritize AI readiness, Google’s strategic foothold in southern India exemplifies the shift toward distributed, geopolitically resilient computing networks.

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