Google Bets $15 Billion on India’s Digital Future, Announces Largest AI Hub Outside the U.S.

NEW DELHI – In a landmark move that underscores India’s pivotal role in the global technology landscape, Google has announced a massive $15 billion investment in the country over the next five years. The centerpiece of this commitment is the construction of a “gigawatt-scale” data center and artificial intelligence hub in the southern city of Visakhapatnam, which the company heralds as its most ambitious AI infrastructure project outside the United States.

The announcement, made at a high-level ceremony in the capital, signals a strategic deepening of Google’s footprint in a market projected to surpass 900 million internet users by the end of the year.

“It is the largest AI hub that we are investing in anywhere outside of the US,” declared Thomas Kurian, CEO of Google Cloud. He detailed plans for an initial “capital investment of $15 billion” and the establishment of the AI hub in Andhra Pradesh, with ambitions to eventually “scale to multiple gigawatts” of computing capacity.

Fueling India’s AI Ambition

This colossal investment is a direct response to India’s exploding demand for AI tools and solutions, driven by rapid adoption across businesses, startups, and individual users. The initiative is perfectly aligned with the Indian government’s own “India AI Vision,” which aims to harness artificial intelligence for economic growth and public welfare.

India’s Information Technology Minister, Ashwini Vaishnaw, welcomed the decision, stating, “This digital infrastructure will go a long way in meeting the goals of our India AI vision.” The project is expected to generate thousands of jobs, boost local manufacturing, and provide the computational backbone for Indian innovators to build next-generation applications.

The sentiment was echoed enthusiastically by state leaders. Andhra Pradesh Chief Minister Chandrababu Naidu called it a “very happy day” for the region. The state’s Technology Minister, Nara Lokesh, revealed the deal was the result of “a year of intense discussions and relentless effort,” describing it as a “game-changing investment” and “a massive leap for our state’s digital future, innovation, and global standing.”

Part of a Broader Gold Rush

Google’s announcement is the latest and largest in a series of moves by global AI giants scrambling to establish a foothold in the vast Indian market.

• OpenAI: The creator of ChatGPT has confirmed it will open an India office later this year. CEO Sam Altman has previously noted that usage of its platform in India has grown fourfold over the past year.

• Anthropic: Earlier this month, the US startup’s CEO, Dario Amodei, met with Prime Minister Narendra Modi to discuss plans to open an office in India next year. Following the meeting, PM Modi posted on X that “India’s vibrant tech ecosystem and talented youth are driving AI innovation,” and that he aimed to “harness AI for growth.”

• Perplexity: In July, the AI search firm announced a major partnership with Indian telecom giant Airtel, offering its premium “Perplexity Pro” subscription for free to Airtel’s 360 million customers for a year—a clear bid to rapidly acquire a massive user base.

Strategic Implications

Analysts see Google’s investment as a multi-layered strategy. By building its largest non-U.S. AI base in India, Google not only secures a dominant position in a critical growth market but also positions itself as a key partner in the nation’s digital infrastructure. This move helps counter the growing competition from rivals like Microsoft-backed OpenAI and Amazon-backed Anthropic on a global stage.

The Visakhapatnam hub will provide the essential computing power needed to train and run large language models (LLMs) tailored to Indian languages and contexts, a significant step towards overcoming the language barrier that has often limited technology penetration beyond English-speaking urban centers.

With this $15 billion vote of confidence, Google is not just building data centers; it is helping to lay the foundation for India to become a global AI superpower, marking what Minister Lokesh aptly called “just the beginning” of a transformative era.

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