Google has announced an artificial intelligence (AI) hub in Visakhapatnam (Vizag) in the South Indian state of Andhra Pradesh, enabling the IT giant to deploy the full AI stack with the aim of helping accelerate AI-driven transformation across India. 

The new AI hub will combine powerful AI infrastructure, data center capacity, new large-scale energy sources and an expanded fiber-optic network, all in one place.

This mega $15 billion investment over five years to build a large AI + data centre hub is Google’s largest ever in India and is aligned to the Modi Government’s Viksit Bharat 2047 vision to accelerate the expansion of AI-driven services. 

This investment is to pioneer a generational shift in AI capability, and anchor the next phase of US–India tech co-operation in an AI era, said industry experts.

According to an analysis conducted by Access Partnership and commissioned by Google, the AI hub is expected to generate at least $15 billion over 2026-2030 period in American gross domestic product (GDP) because of new economic activity from increased cloud and AI adoption, as well as the American talent and resources involved in developing and operating the AI hub.

Pioneering a generational shift in AI capability

This initiative creates substantial economic and societal opportunities for both India and the US - while pioneering a generational shift in AI capability.

The announcement was made at Bharat AI Shakti, an event hosted by Google in New Delhi, and a pre-event to the  India-AI Impact Summit 2026 in the presence of Ashwini Vaishnaw, the Minister for Railways, Information & Broadcasting and Electronics & Information Technology, Nirmala Sitharaman, Minister of Finance and Corporate Affairs; Nara Chandrababu Naidu, the Chief Minister of Andhra Pradesh; Nara Lokesh, the Minister for Information Technology, Electronics and Communications, RTG and HRD in Andhra Pradesh as well as Thomas Kurian, CEO of Google Cloud.

Lauding the Google move, Vaishnaw said this digital infrastructure will go a long way in meeting the goals of our India AI mission. 

"I would also like to thank the Honorable Prime Minister Narendra Modi for giving us this vision of using technology in every walk of life. I would like the industry to help re-skill and upskill our IT professionals in a major way, and thank Google for making this a major part of their agenda. AI services are emerging as a totally new category in our digital economy, and we look forward to this new facility being used for developing our youth for AI services," he stated.

Naidu said this significant investment in Andhra Pradesh marks a new chapter in India’s digital transformation journey. 

"We are proud to host India’s first truly gigawatt-scale data center and Google’s first AI hub in India, which is a testament to our shared commitment to innovation, AI adoption, and long-term support for businesses and startups in the state," he stated.

Kurian pointed out that the Google AI hub in Visakhapatnam represents a landmark investment in India’s digital future. 

"By delivering industry-leading AI infrastructure at scale, we are enabling businesses to innovate faster and creating meaningful opportunities for inclusive growth. This partnership reflects our shared commitment to the Indian and U.S. governments to harness AI responsibly and drive transformative impact for society," he added.

Accelerating AI transformation

The Google AI hub in Visakhapatnam will include a purpose-built data center campus, adding gigawatt-scale compute capacity to help meet demand for digital services across India and around the world. Developed with leading partners, AdaniConneX and Airtel, it will be built with the same cutting-edge infrastructure that powers Google products like Search, Workspace, and YouTube.

The AI hub will also deliver the high-performance and low-latency services that businesses and organizations need to build and scale their own AI-powered solutions, accelerate research and development, and ultimately help India secure its place as a global leader in the AI-driven future.

When operational, the new data center campus will join Google’s network of existing AI data centers that spans 12 countries, said Google in a statement. 

It will benefit from technology developed by Google’s R&D centers in Bengaluru, Hyderabad and Pune, including the design and development of crucial software and hardware innovations, it stated.

Creating new international subsea gateway

Google’s AI hub investment includes construction of a new international subsea gateway, including multiple international subsea cables to land in Visakhapatnam on India’s eastern coast - connecting to Google’s more than two million miles of existing terrestrial and subsea cables. 

This will establish Visakhapatnam as an AI and connectivity hub that not only serves India but the rest of the world.

The gateway will help the country meet surging digital demands and provide route diversity to complement existing subsea cable landings in the Mumbai and Chennai areas. 

New high-capacity, low-latency pathways will deliver faster experiences to Google users and customers; increase the resilience and capacity of India’s digital backbone; as well as drive digital inclusivity and transformation across India, bringing the benefits of AI to more people and businesses nationwide.-TradeArabia News Service