In a major boost to India’s digital infrastructure, Google’s parent company Alphabet is reportedly planning a massive $6 billion investment to build a 1 gigawatt (GW) data centre and associated power infrastructure in Visakhapatnam, Andhra Pradesh. According to sources cited by Reuters, this project will mark Alphabet’s first data centre investment in India and will be its largest in Asia, both in terms of investment value and capacity.
The proposed investment includes a significant $2 billion commitment to renewable energy, which will be used to sustainably power the data centre operations. This aligns with Alphabet’s broader global mission to achieve carbon-free energy for all its data centres and operations by 2030.
Strategic Location: Visakhapatnam as a Data Hub
Visakhapatnam, a port city in Andhra Pradesh, is being positioned as a future data infrastructure hub thanks to increasing interest from both domestic and global tech companies. The state’s focus on digital transformation and green energy is attracting serious investor attention. The upcoming Alphabet data centre will further solidify Andhra Pradesh’s ambitions to become a leading destination for data infrastructure in India.
As digital consumption in India surges, driven by AI, cloud computing, 5G, and data localization requirements, demand for large-scale data centres is at an all-time high. Alphabet’s entry into the Indian data centre ecosystem not only brings investment but also enhances the country’s data sovereignty and infrastructure resilience.
Supporting India’s Digital and Green Energy Goals
A standout feature of the project is the $2 billion infusion into renewable energy capacity, which will be critical to powering the 1 GW data centre. This move comes amid increasing regulatory and environmental pressures for tech companies to reduce their carbon footprint.
By leveraging solar and wind resources in the region, the data centre is expected to operate on clean energy, supporting India’s larger commitments towards net-zero emissions and sustainable industrialization.
Government Backing and Upcoming Announcements
The government of Andhra Pradesh, under the leadership of IT Minister Nara Lokesh, is actively pushing for technology-driven investments. In his recent comments to Reuters, Lokesh hinted at further major announcements in the state’s data centre and IT infrastructure space, stating, “We’ve made certain announcements like Sify (550-MW data centre to be built in the state), which are public… There are certain announcements which are not yet public. In October, we will make those announcements.”
The Alphabet project is expected to be a flagship initiative, drawing more investments and strengthening public-private partnerships for the state’s IT growth.
Conclusion
Alphabet’s proposed $6 billion investment in Andhra Pradesh is a landmark moment for India’s tech and data centre landscape. With a focus on green energy and cutting-edge infrastructure, the data centre in Visakhapatnam could become a model for future projects across the region.
This move not only accelerates India’s digital transformation journey but also underscores the country’s growing importance in the global technology infrastructure ecosystem.
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