The Andhra Pradesh government is set to sign a major agreement with Google to establish a 1-gigawatt hyperscale data centre campus in Visakhapatnam. This ₹80,000 crore investment aims to anchor “AI City Vizag,” India’s first artificial intelligence hub, and will become one of Google’s largest projects in Asia. The development will help fast-track AI adoption and digital infrastructure across India.
The upcoming AI hub will combine advanced AI infrastructure, vast data storage capacity, renewable energy sources, and high-speed fibre connectivity. Designed to be fully integrated with Google’s global network through subsea and terrestrial links, it will also include clean-energy systems to support sustainable operations.
According to state assessments, the project is expected to add an average of ₹10,518 crore annually to the state’s GSDP between 2028 and 2032. It will also generate around 1.88 lakh direct and indirect jobs each year. Additionally, Google Cloud’s technologies are projected to contribute ₹9,553 crore per year in productivity benefits, adding up to ₹47,720 crore over five years.
The State Investment Promotion Board, led by Chief Minister N. Chandrababu Naidu, has approved the project. It will benefit from streamlined single-window clearances, reliable utilities, renewable energy, and plug-and-play infrastructure. The agreement will be formally signed in New Delhi, in the presence of Union Ministers Nirmala Sitharaman and Ashwini Vaishnaw, along with top Google executives such as Thomas Kurian, Bikash Koley, and Karan Bajwa.
The Vizag AI hub will include Google’s full AI technology stack, supporting data-heavy applications, cloud platforms, and emerging AI tools. It is expected to become a backbone for India’s AI-driven industries and contribute significantly to the country’s digital economy.
Following the Google deal, Chief Minister Naidu is expected to meet Prime Minister Narendra Modi to invite him to 2 key events, the “Super GST – Super Savings” programme in Kurnool and the “CII Partnership Summit 2025” in Visakhapatnam. The latter will bring together global investors and policymakers to explore new business opportunities in Andhra Pradesh.
The ₹80,000 crore AI hub in Vizag marks a transformative step for both Andhra Pradesh and India. By partnering with Google, the state is positioning itself as a global centre for artificial intelligence, clean energy, and digital innovation, setting the stage for India’s AI-powered future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Oct 13, 2025, 3:30 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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