Alphabet Inc.’s Google is preparing to plant one of its most ambitious energy-linked data-center footprints in Andhra Pradesh, Bloomberg reports.
According to the report, the state’s leader, N. Chandrababu Naidu, is already signaling that the scale of the project may grow far beyond the initial $15 billion planned for the first five years.
During an interview in Visakhapatnam on Saturday, Naidu said Google’s plan to set up a large data center in the coastal city is only the starting point of what he expects to become a long-term expansion. Asked whether the US tech giant might double its investment once the initial period elapses, he said, “It is always an opportunity under their compulsions.” His phrasing hinted that global infrastructure pressure — driven by rising AI workloads — could draw Google into a deeper build-out.
“It is a win-win situation to start with $15 billion within five years,” Naidu said, framing the company’s move as a cornerstone of Andhra Pradesh’s economic revival strategy.
A State Racing to Become India’s Data Capital
Andhra Pradesh has set in motion a sweeping plan to court data-center operators, renewable-energy investors, and global cloud companies. Naidu said the state already has commitments for 5.5 GW of data-center capacity from firms including Reliance Industries Ltd., and that the build-out will be paired with large-scale green-energy expansion.
“This data flow is cost-effective compared to consumption of power,” he said — an argument that blends the economics of hyperscale computing with the state’s long-term energy plan. “That is the game changer. Now everybody is coming to Andhra Pradesh.”
Naidu said the combined effect of these projects positions Andhra Pradesh to become a global hub for data centers, a goal he has pursued since his earlier tenures, long before the current AI-driven global infrastructure boom.
Google announced the Visakhapatnam project last month, linking it to new energy sources and a fiber-optic network that would anchor the region’s role in the company’s Indian operations. Indian tycoon Gautam Adani later confirmed that his joint venture, AdaniConneX, would partner with Google on the project, along with Bharti Airtel, India’s second-largest wireless carrier.
Google has described the project as its largest investment in India to date. It is also designed to serve as a base for accelerating local AI-industry growth, aligning with state and national goals for tech-led economic expansion. Google’s representatives have not commented on Naidu’s latest remarks about possible additional investment.
India’s Data-Center Boom Intensifies
The larger landscape around Google’s project is charged with activity. India has emerged as one of the biggest global beneficiaries of the AI infrastructure wave, drawing interest from nearly every major US technology company.
Amazon has already outlined a plan to invest $12.7 billion in cloud infrastructure in India by 2030. OpenAI, in partnership negotiations with local and global players, is pursuing a 1-gigawatt data-center project in the region — one of the largest single-site capacities ever proposed by a US AI company. The country’s overall data-center investment is expected to cross $100 billion by 2027, according to CBRE Group Inc.
This rush is tied directly to unprecedented global demand for AI computing. Goldman Sachs Research estimates that the world will have about 122 GW of data-center capacity in place by the end of 2030. That level of expansion brings profound consequences for global power systems and could require roughly $720 billion in grid spending through the decade.
In India, the expansion is taking on a distinctive shape. Commercial land costs are lower than many global competitors; telecom infrastructure is widespread; and the country offers one of the largest bases of cloud-ready enterprises and digital consumers. At the same time, the demands of hyperscale AI infrastructure have laid bare the parts of India’s system that still run thin — from inconsistent electricity supply to tight water resources and the long delays that accompany grid expansion.
Modi’s National Tech Push Meets Local Constraints
Prime Minister Narendra Modi has framed technology as a driver of economic transformation, job creation, and poverty reduction. That has translated into open support for data-center investment, subsidies for renewable-energy expansion, and a long queue of state governments competing to attract hyperscale facilities.
But India’s infrastructure gap remains a central tension. Water availability has been a mounting challenge for the industry, because many data centers rely on cooling technologies that require large volumes of water. Several states have begun pressuring operators to adopt air-cooling or hybrid systems, which are more costly.
Electricity reliability also complicates the government’s pitch. The power grid in many regions still struggles with load balancing, and the sudden rise of power-intensive data centers — combined with rapid electrification of transport and manufacturing — risks outpacing grid upgrades. The country’s renewable-energy sector is growing fast, yet still faces bottlenecks in storage capacity, transmission lines, and project approvals.
These limitations do not diminish India’s appeal, but they raise the stakes for states like Andhra Pradesh that want to become dominant players in digital infrastructure. Naidu’s administration is attempting to address this by tying data-center policy directly to renewable-energy expansion and by pitching the state as a region where land, power, and logistics can be delivered in a unified package.
Naidu said he is targeting a 15 percent annual growth rate for Andhra Pradesh and expects to attract $1 trillion in investment over the next decade. The figure is ambitious and hinges heavily on the state’s ability to attract companies that commit large sums over long durations — such as Google.
The chief minister’s strategy depends on portraying the state as stable, predictable, and business-friendly at a moment when global companies are seeking locations that can sustain multi-billion-dollar AI infrastructure. Land availability around Visakhapatnam, the presence of major ports, ongoing renewable-energy projects, and political alignment with the central government all form part of his pitch.
The political angle matters. Naidu’s Telugu Desam Party is a crucial part of the coalition supporting Narendra Modi’s government in New Delhi. On Saturday, Naidu cited the sweeping victory of Modi’s party in the Bihar state election this week as evidence of national stability under the current leadership.
“Winning the election is a message for the global community and also local people,” he said. “Local people will move very fast because of stability.”
That line captures the state government’s effort to signal reliability to global investors. In many emerging markets, political stability is a deciding factor for long-term cloud and AI infrastructure commitments. Hyperscale projects can take years to plan and decades to operate, requiring regulatory continuity and consistently supportive local administrations. Naidu is seeking to assure investors that Andhra Pradesh can deliver that environment.
What Google Stands to Gain
For Google, the Visakhapatnam project fits into a broader push to expand global AI infrastructure and build regional hubs tied directly to renewable-energy sources.
Its India expansion has grown more urgent as AI model training and inference needs soar. The company is competing head-to-head with Amazon, Microsoft, and Meta for global GPU capacity, land, fiber routes, and long-term clean-energy contracts. India offers a combination of scale and cost efficiency that makes it attractive for future AI clusters, especially as the company seeks to diversify beyond its existing US and European centers.
The Visakhapatnam project is particularly significant because it is designed from inception with green-energy integration and dedicated fiber infrastructure — a model that Google has been moving toward in several countries to strengthen long-term resilience and cost predictability.
The project is also expected to strengthen Google’s relationship with India, a market central to the company’s product roadmap. India is one of the world’s largest bases of internet users, mobile-first consumers, and developers — making local AI infrastructure a strategic priority.
Google’s decision to anchor a major investment in Andhra Pradesh is already reshaping expectations for the region. The combined effect of Google, Reliance, AdaniConneX, and Bharti Airtel positions the state as one of the emerging pillars of India’s AI and cloud economy.
However, whether the $15 billion investment grows further will depend on factors well beyond Andhra Pradesh: global GPU availability, cloud demand across Asia, India’s regulatory climate, and Google’s own AI-infrastructure strategy. But Naidu’s confidence, and his eagerness to suggest that the company might scale beyond its initial commitment, is rooted in the speed of India’s data-center boom.
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