AI City Vizag: Google, Andhra Pradesh Sign $10 Billion Deal To Build Asia's Largest Data Centre
The AI hub will integrate advanced data centre infrastructure, large-scale energy solutions, and an extensive fibre-optic network, positioning Vizag as a national leader in AI-driven innovation.
The Government of Andhra Pradesh formalised a major partnership with Google to establish a 1-gigawatt hyperscale data centre in Visakhapatnam today. The agreement, signed in New Delhi, is part of a nearly $10 billion investment that underpins the ambitious "AI City Vizag" project.
Once operational, this data centre will be among Google's largest in Asia, deploying its full AI stack to drive India’s AI transformation. The AI hub will integrate advanced data centre infrastructure, large-scale energy solutions, and an extensive fibre-optic network, positioning Vizag as a national leader in AI-driven innovation. The project is expected to boost digital growth and technology adoption across Andhra Pradesh.
Event Details And Participants
The signing ceremony took place at Hotel Taj Mansingh in New Delhi on October 14. Key participants included Andhra Pradesh Chief Minister N Chandrababu Naidu, IT Minister Nara Lokesh, and senior Google executives such as Thomas Kurian, CEO of Google Cloud, Bikash Koley, Vice-President of Global Infrastructure, and Karan Bajwa, President, Asia Pacific Google Cloud. Union Cabinet Ministers Nirmala Sitharaman (Finance) and Ashwini Vaishnaw (I&B) were also present at the event.
Economic Impact And Job Creation
The state government projects that the AI hub will contribute an average annual GSDP of Rs 10,518 crore between 2028 and 2032. The initiative is also expected to support approximately 1,88,220 jobs per year. Productivity gains enabled by Google Cloud are anticipated to generate an additional Rs 9,553 crore annually, totalling Rs 47,720 crore over five years.
Hailing the agreement as 'just the beginning', Nara Lokesh said, "It is a massive leap for our state’s digital future, innovation, and global standing."
The project received approval from the State Investment Promotion Board, chaired by CM Naidu. Streamlined facilitation measures include single-window clearances, reliable utility infrastructure, renewable energy integration, and plug-and-play facilities. Oversight and implementation will be led by the Economic Development Board in collaboration with the Department of ITE&C.
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