Key takeaways
- Google plans to invest over ₹52,000 crores in a new data centre in Vizag, India.
- Investment includes ₹17,538 crores for developing renewable energy capacity for the facility.
- This marks Google's first major data centre investment in India, expanding its cloud presence.
- The announcement coincides with US tariffs on India, highlighting geopolitical tensions.
- India's data centre capacity is projected to reach 1.2 GW by April 2025.
Google is set to invest $6 billion (~₹52,634 crores) to develop a 1 gigawatt (GW) data centre in Visakhapatnam (Vizag), Andhra Pradesh, reported Reuters on July 30.
Citing government sources, the report added that this investment will include $2 billion (~₹17,538 crore) to develop renewable energy capacity to power the facility.
While this is the company’s first such investment in India, it has already established cloud regions across the country in Mumbai and Delhi.
The reports arrive on the same day as US President Donald Trump announced a 25% tariff on India. A few months earlier, Google reaffirmed its plan to spend approximately $75 billion this year on data centre expansion, despite the looming threat of tariffs from the Trump administration.
That said, Google also announced that its cost-effective Gemini 2.5 Flash model will now be processed locally in India. Both this and the data centre investment development also occur as India works to adopt a data protection act that will encourage and prioritise localisation of personal and sensitive data.
As of April 2025, Colliers, an investment management company, estimated India’s data centre capacity at 1.2 GW.
Mumbai continues to account for the majority of the capacity, with 41%, followed by Chennai (23%) and Delhi NCR (14%).
Like Mumbai and Chennai, Visakhapatnam offers the coastal advantage where data centres can serve as cable landing stations to connect with undersea cables, facilitating connections with global networks.
Reuters also reported that Nara Lokesh, Andhra Pradesh's information technology minister, announced that the state has already secured investments in data centres amounting to a capacity of 1.6 GW, from nearly zero currently.
If the investment is approved, Google will join its counterparts, Microsoft, AWS and others in investing in data centres and cloud infrastructure in India.
