Google to Invest $6 Billion in Andhra Pradesh for Data Centre Development

July 31, 2025

Google, a subsidiary of Alphabet, announced plans to invest $6 billion to build a 1-gigawatt data centre along with its power infrastructure in the southern Indian state of Andhra Pradesh. This marks the firm’s first major investment in India, according to government sources.

Location and Investment Details

The data centre will be constructed in the port city of Visakhapatnam. Part of this investment includes $2 billion allocated specifically for renewable energy capacity that will power the facility. Two government sources from Andhra Pradesh, speaking to Reuters, confirmed these details.

Significance and Regional Expansion

This data centre will be the largest in terms of capacity and investment size in Asia. It is a part of Alphabet’s broader, multi-billion-dollar expansion of its data centre portfolio across the Asia-Pacific region, including countries like Singapore, Malaysia, and Thailand.

Alphabet’s Global Data Centre Strategy

Despite economic uncertainties and pressures from U.S. trade policies, Alphabet reaffirmed in April its commitment to investing approximately $75 billion in data centre infrastructure worldwide this year. The company did not immediately respond to Reuters regarding the new investment details.

Local Government and Investment Climate

Andhra Pradesh’s Information Technology Minister, Nara Lokesh, is currently in Singapore discussing investment opportunities but did not comment specifically on the Google project. He referenced previous announcements such as the 550 MW data centre planned by Sify Technologies in the state and hinted at upcoming announcements in October.

Andhra Pradesh’s Data Centre Expansion Goals

Since the state’s bifurcation in 2014, which resulted in the loss of Hyderabad and a significant revenue source to Telangana, Andhra Pradesh has been actively seeking investments to address financial challenges. Lokesh stated that the state has finalized investments with a total capacity of 1.6 GW in data centres and aims to scale up to 6 GW over the next five years, starting from nearly zero.

Infrastructure Improvements and Connectivity

The minister also discussed plans to establish three cable landing stations in Visakhapatnam, aiming to create a cable network twice the size of Mumbai’s, to facilitate fast and reliable connections to global undersea cables. These stations are crucial for optimal data transfer and storage.

Focus on Sustainable Power Supply

To meet the industry’s high power demands, Andhra Pradesh is working on strengthening its energy infrastructure. Lokesh anticipates that the electricity requirements for data centres could reach up to 10 GW over five years, with a significant portion expected to come from renewable sources, emphasizing sustainability as a key value proposition.

Balancing Energy Sources

While the majority of power is expected to be green energy, some capacity may be coal-fired to ensure consistent 24/7 reliability for data centres, given their energy-intensive nature.