Google has announced a substantial investment of $15 billion over the next five years, extending through 2030, to establish its first artificial intelligence (AI) hub and a 1-gigawatt data center in India. This significant undertaking will be located in the port city of Visakhapatnam, in the southern state of Andhra Pradesh. This marks Google’s largest-ever investment in India, building upon an initial $10 billion commitment made in 2020.

The announcement comes at a time when the Indian government is actively promoting its 'swadeshi' (made in India) initiative, urging a reduced reliance on U.S. tech giants and fostering local alternatives. Despite this push, Google's deep roots in India, with 14,000 employees and 21 years of operation, including cloud regions in Delhi and Mumbai, underscore its commitment to the nation.

According to Google Cloud CEO Thomas Kurian, the new AI hub will be the company's largest investment outside of the U.S. and is designed to scale to 'multiple gigawatts' over time. It forms a crucial part of Google’s global network of AI centers across 12 different countries. Beyond the AI hub, Google also plans to transform Visakhapatnam into a global connectivity hub by bringing its extensive subsea cable infrastructure to the city.

To realize this ambitious project, Google has forged key partnerships within India. It is collaborating with Indian telecom provider Bharti Airtel to construct both the data center and the essential cable landing station in Visakhapatnam. Furthermore, Google has teamed up with Adani Group-backed AdaniConneX to establish the necessary infrastructure for the data center, strengthening local industrial participation.

The AI hub is envisioned to offer a 'full stack of solutions,' including Google’s custom Tensor Processing Units (TPUs) to facilitate local AI processing. It will also provide access to cutting-edge AI models, such as Gemini, and platforms for developing AI agents and applications. The hub's capabilities will extend to supporting various consumer services, including Google Search, YouTube, Gmail, and Google Ads, with the strategic goal of serving not only India but also Asia and other international markets.

The choice of Visakhapatnam is a strategic one, partly influenced by Andhra Pradesh's Chief Minister N. Chandrababu Naidu, who has a proven track record of attracting global tech firms like Oracle and Microsoft to the state when Hyderabad was its capital. Naidu, a significant political ally of Prime Minister Modi, has been instrumental in shaping national policy discussions, lending political weight to the initiative.

Indian IT minister Ashwini Vaishnaw lauded the AI hub as a vital contribution to India’s national AI mission goals. He also suggested the Andaman Islands as a potential future hub for global internet data transfer and proposed linking Visakhapatnam with Sittwe in Myanmar to enhance connectivity in India's northeastern states. Prime Minister Narendra Modi echoed this sentiment, stating that the multi-faceted investment aligns with India's vision for a developed nation, aiming to democratize technology, ensure 'AI for all,' boost the digital economy, and solidify India's position as a global technology leader.