Google revealed on Tuesday that it will invest $15 billion in India over the next five years, announcing plans to establish a massive data centre and artificial intelligence base in the country’s south.
Thomas Kurian, CEO of Google Cloud, announced the commitment at a ceremony in New Delhi, describing the planned facility as “the largest AI hub we are investing in anywhere outside of the United States.” He specified a “capital investment of $15 billion” over the five-year period to build a “gigawatt-scale AI hub in Visakhapatnam,” a city in the southern state of Andhra Pradesh. Kurian added that the center is designed to eventually “scale to multiple gigawatts” of capacity.
The substantial investment comes amid a surge in demand for AI tools and solutions in India, which is projected to have over 900 million internet users by the end of this year, driven by increasing adoption from both businesses and individuals.
India’s Information Technology Minister, Ashwini Vaishnaw, thanked Google for the commitment, stating, “This digital infrastructure will go a long way in meeting the goals of our India AI vision.”
The announcement was warmly received by state officials. Andhra Pradesh Chief Minister Chandrababu Naidu called it a “very happy day.” The state’s Technology Minister, Nara Lokesh, described the deal on social media platform X as a “game-changing investment” resulting from “a year of intense discussions and relentless effort.” He added that it represents a “massive leap for our state’s digital future, innovation, and global standing,” noting, “This is just the beginning.”
This move by Google follows a series of recent expansions by leading AI firms in India. Earlier this month, US startup Anthropic stated it plans to open an office in the country next year, with its CEO Dario Amodei meeting Prime Minister Narendra Modi. In a post on X, Modi told Amodei that “India’s vibrant tech ecosystem and talented youth are driving AI innovation,” and expressed his desire to “harness AI for growth.”
Other major players are also advancing their presence. OpenAI has confirmed it will open an India office later this year, with its chief Sam Altman noting that usage of its ChatGPT platform in the country has increased fourfold over the past year. Additionally, AI firm Perplexity announced a significant partnership in July with Indian telecom giant Airtel, offering the carrier’s 360 million customers a free one-year subscription to Perplexity Pro.
