Google on Tuesday performed the groundbreaking ceremony for its India AI hub in Visakhapatnam aka Vizag. The AI hub is part of Google’s commitment to invest $15 billion in India over a five-year period from 2026 to 2030. As part of the project, the company is building three AI data centres in the coastal city, in partnership with Adani ConneX and Airtel Nxtra. The project also supports the America-India Connect initiative, which aims to expand the fibre optic network.
The groundbreaking ceremony was attended by a number of politicians, including India’s IT Minister and Andhra Pradesh Chief Minister. IT Minister Ashwini Vaishnaw said the (Google) “India AI Hub and three subsea cables landing in Visakhapatnam will become very important infrastructure for the country’s journey forward.”
Google Cloud CEO Thomas Kurian, meanwhile, called the groundbreaking “an inflection point for AI-native future” in India. “The Google AI hub will serve as a catalyst for growth built on deep community partnerships,” he said.
Visakhapatnam as AI data centre hub
While the new AI hub marks a beginning for Google in India as far as AI infrastructure is concerned, it is also a moment that may help Visakhapatnam emerge as arguably the biggest AI data centre hub in India, and likely one of the biggest in the world.
Andhra Pradesh CM Chandrababu Naidu has made the project a cornerstone of his AI-driven future of the city. “Andhra Pradesh is emerging as India’s premier investment destination, powered by speed, trust, and ease of doing business,” Naidu said on Tuesday. “Google’s AI hub in Visakhapatnam will be a cornerstone of our growing tech corridor, driving innovation, creating high-value opportunities for our youth, and strengthening our position in the global digital economy.”
The idea is that just the way Naidu earlier attracted investment and built Hyderabad into one of the top destinations for tech companies, he wants the same for Visakhapatnam.
The vision ties up well with the Indian government proposal to boost AI infrastructure. The central government earlier proposed a 21-year tax holiday on data centres in India if they are used to serve AI to Indian, as well as global, consumers. Essentially, the Indian government has told companies like Google and OpenAI that you may create AI anywhere but if you want to serve this AI to consumers at the best possible prices, you must look at India to set up your AI data centres.
To attract AI companies, Andhra Pradesh is making a rather compelling pitch. For example, the Andhra government is going to provide electricity to Google at a discount rate of Rs 1 per unit for a period of 10 years, which may be extended by another five years if key milestones are met. Similarly, the state has offered a 25 per cent discount on land value, including 160 acres at Rambilli, 120 acres across Adavivaram and Mudasarlova, and 200 acres at Tarluvada.
On Tuesday Andhra Pradesh HRD Minister Nara Lokesh called the Google hub a beginning of a bigger plan. “This is just the beginning of our vision of creating 6.5 gigawatts of compute capacity in Andhra Pradesh and in Visakhapatnam. And it’s not just about one data centre, but it’s about bringing the entire ecosystem,” he said.
In its quest to become the AI data centre hub, Visakhapatnam is likely to be helped by its geography. Being a coastal city, it has some notable advantages over cities like Bengaluru and Hyderabad. And companies are taking note. There are reports that Sify Technologies and Meta are setting up a major sub-sea cable network to link the city with major areas across the world. The sub-sea links may prove one of the key factors in attracting AI data centres to the city.
At the same time, the climate and environs — rather pleasant compared to other major Indian cities — may also help tech giants take a shine to Visakhapatnam. Unlike Hyderabad and Bengaluru, which are increasingly congested, the coastal city may prove more palatable as a centre of high-tech offices that would be needed to house tech employees managing the AI data centres.
