Startup Originals Team
In a major boost to India’s digital infrastructure, Google is set to begin construction of a massive data centre hub near Visakhapatnam on April 28, 2026. The project, valued at approximately $15 billion (₹1.25 lakh crore), is considered the largest single foreign direct investment in India to date and one of the most significant technology infrastructure projects the country has ever seen.
The groundbreaking ceremony will be attended by Andhra Pradesh Chief Minister N. Chandrababu Naidu and Google Cloud CEO Thomas Kurian.
If you are tracking India’s biggest technology investments and what they mean for the startup and business ecosystem, this one is worth paying close attention to.
India’s Largest AI Data Centre Hub in the Making
The facility will be developed across approximately 601 acres of land in three separate locations near Visakhapatnam: Adavivaram and Tarluvada in Visakhapatnam district, and Rambilli in neighbouring Anakapalli district.
Once completed, it will be India’s first 1-gigawatt (GW) AI and data centre hub and among the largest in Asia. The investment of approximately $15 billion will be deployed over five years from 2026 to 2030.
The hub is designed to support cloud computing services, artificial intelligence workloads, data storage and processing, and advanced computing systems. It will also include three high-capacity submarine cables and dedicated cable landing stations connecting Visakhapatnam directly to Singapore, Malaysia, Australia, and 12 other countries, along with high-speed metro fibre networks.
Google plans to commission the three centres by July 2028.
Who Is Building It?
The project is being implemented by Raiden Infotech India Private Limited, a subsidiary of Google. The land has been transferred to this entity by the Andhra Pradesh government.
Google has partnered with the Adani Group through AdaniConneX and Airtel to build the infrastructure. Adani Infra (India) Limited is handling construction across the three campuses through Special Purpose Vehicles. The project also includes co-investment in new transmission lines, clean energy generation, and energy storage systems in Andhra Pradesh.
Google currently operates data centres in 11 countries including the United States, Singapore, and Japan. This Indian expansion focuses specifically on supporting AI workloads and digital services at scale.
Power Infrastructure and Strategic Advantage
To support the enormous energy demand, Google has secured a power distribution license, allowing it to directly manage electricity supply for the data centre. The facility will operate at 1 GW capacity, ensuring high-performance computing capabilities required for AI-driven services.
Google also plans to build its own renewable energy project to power the facility, with no energy incentives from the state or central government for this component.
The Andhra Pradesh government is offering a 25% discount on market price for the 480 acres of additional land, waiver on stamp duties, a 25% discount on industrial water supply, exemption on electricity duty, and a one-rupee discount on industrial electricity tariff. The SGST reimbursement during the construction phase is capped at ₹2,245 crore. These subsidies will continue for approximately 15 years for electricity and 10 years for water.
Economic Impact: Jobs, Revenue, and Growth
This mega project is expected to have a significant economic multiplier effect on Visakhapatnam and Andhra Pradesh.
According to Union Minister of State Dr. Pemmasani Chandrasekhar, the project is expected to generate approximately ₹10,000 crore in revenue for Andhra Pradesh. It will create 5,000 to 6,000 direct jobs and 20,000 to 30,000 total jobs in the state.
Beyond employment, the project is expected to drive growth in real estate, infrastructure development, and local businesses. Reports already indicate rising demand for housing and commercial spaces in and around Visakhapatnam as a result of this investment.
Why Visakhapatnam?
Visakhapatnam was chosen for several strategic reasons.
The city has a coastal advantage with existing submarine cable landing infrastructure, making it ideal for a global data hub. Andhra Pradesh’s business-friendly policies and incentive packages made the location financially competitive. The availability of over 600 acres of contiguous land across three sites provided the scale needed for a gigawatt-class facility.
India’s total data centre capacity was estimated at around 1.26 GW as of April 2025 and is projected to double to over 2 GW by FY2027. With this single project adding 1 GW, Visakhapatnam will become one of India’s most important data centre hubs alongside Navi Mumbai, Chennai, Noida, Hyderabad, and Bengaluru.
What Should Startups and Businesses Take Away?
For founders and investors watching India’s digital infrastructure story, Google’s Vizag project carries clear signals:
India’s hyperscale data centre market is entering a new phase. A 1 GW facility by a single company is unprecedented in the country.
Startups in cloud services, AI infrastructure, edge computing, and data management are positioned to benefit from the expanding ecosystem.
Visakhapatnam will see a surge in demand for skilled tech talent, creating opportunities for edtech and workforce development startups.
The submarine cable connectivity will make Vizag a strategic node for global data traffic, opening doors for networking and telecom startups.
Real estate and ancillary services around the data centre campuses will see significant growth.
India’s tech and infrastructure story is accelerating, and startuporiginals.in will keep tracking what this means for founders and investors.
The Bottom Line
Google’s ₹1.25 lakh crore data centre hub near Visakhapatnam is not just an infrastructure project. It is a transformational step for India’s digital future. With 1 GW of AI computing capacity, submarine cable connectivity to 12+ countries, partnership with Adani and Airtel, and an expected ₹10,000 crore in state revenue, this is the kind of investment that reshapes entire regions.
For Andhra Pradesh, for India’s tech ecosystem, and for startups building in the AI and cloud space, this is a defining moment.
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