Google Invests $15B in AI Data Center in India, Boosting AI Ecosystem

Google announced Tuesday it will invest $15 billion over the next five years to build an AI data center in India's Andhra Pradesh state. This marks one of the tech giant's largest investments ever in the country and signals a major shift in how big tech companies are expanding their AI infrastructure globally.

Thomas Kurian, CEO of Google Cloud, said during an event in New Delhi that "this will be the largest AI center we're investing in outside the United States." The facility will be located in the coastal city of Visakhapatnam and will have gigawatt-scale capacity. State officials had previously estimated the investment at $10 billion, but Google's final commitment came in higher.

The move comes as tech giants are spending heavily to build new data center infrastructure. Companies are racing to meet growing demand for AI services, and the competition is getting intense. Google alone has committed to spending around $85 billion this year just on data center capabilities.

For India, this represents a significant win in attracting foreign tech investment. The country has been positioning itself as a key market for AI development, and Google's decision validates that strategy. Andhra Pradesh, located in southern India, has been actively courting tech companies with favorable policies and infrastructure support.

From a market perspective, this investment shows how seriously Google is taking the AI infrastructure race. Building outside the US reduces regulatory risks and taps into India's large pool of tech talent. It also positions Google to serve the massive Indian market more effectively, where demand for AI services is expected to grow rapidly.

The facility's gigawatt capacity puts it among the largest data centers globally. This scale suggests Google expects significant demand not just from India but potentially from across the Asia-Pacific region. The investment timeline of five years indicates this is a long-term strategic play rather than a quick market grab.