Prakash Singh | AFP | Getty Images
Google will invest $10 billion to build new data centers in southern India, local officials said, one of the company’s biggest investments in the South Asian country as the tech giant scrambles to meet exploding demand for AI.
Nara Lokesh, Minister of Human Resource Development in the Indian state of Andhra Pradesh, announced on Monday that Google and the state government will sign a memorandum of understanding for a $10 billion, 1 GW project in the state.
The deal, scheduled to be signed on Tuesday, comes after “a year of intense discussions and relentless efforts” and is “just the beginning,” Lokesh said in a post on social media platform X.
Indian media outlet Economic Times previously reported that the investment will be made by Google’s Indian subsidiary Raiden Infotech, which plans to develop three campuses across Visakhapatnam.
Another report from ET on Tuesday said state officials planned to double these projects over the next three years, significantly expanding the state’s computing capacity.
As AI services grow in popularity, companies are increasing their infrastructure investments to meet the surge in global demand for cloud services.
As part of its second-quarter results in July, Google raised its 2025 capital spending forecast to $85 billion from $75 billion in February due to “solid and growing demand for our cloud products and services.”
That same month, the company also announced plans to invest $25 billion in data center and artificial intelligence infrastructure over the next two years in states across the nation’s largest power grid.
India is increasingly attracting multinational companies such as Microsoft and AWS to invest in the country’s cloud and AI infrastructure.
