Google is preparing to invest $6 billion to build a major data centre in the southern Indian state of Andhra Pradesh, according to sources within the state government. The facility, which will be based in the port city of Visakhapatnam, is expected to have a capacity of 1 gigawatt. This will be the largest such project in Asia in terms of both size and investment.
Out of the total investment, about $2 billion will go into setting up renewable energy infrastructure to support the data centre. The remaining funds will be used to develop the facility and its supporting systems. The sources said that Google is yet to make a public announcement, but discussions have been held with the state officials. The company has not responded to Reuters’ request for comment on the development.
The data centre in Visakhapatnam is part of Google’s wider plan to expand its presence in Asia. The tech giant has already announced projects in countries such as Singapore, Malaysia, and Thailand. In April, Google’s parent company Alphabet confirmed its plan to invest about $75 billion this year on building data centre infrastructure around the world. The company is pushing forward with its expansion plans despite global economic concerns.
Andhra Pradesh is actively looking to attract more investments, especially after it lost its capital Hyderabad in 2014 due to the creation of Telangana. The state, which is now governed by a key ally of Prime Minister Narendra Modi, has been under financial pressure. It is now positioning itself as a technology and infrastructure hub.
The state’s IT minister, Nara Lokesh, said that Andhra Pradesh has already finalised deals for data centres with a total capacity of 1.6 gigawatts. He is currently visiting Singapore to promote investment opportunities and discuss future projects. Lokesh expects these projects to be operational within the next two years. He also said that the state aims to build 6 gigawatts of data centre capacity over the next five years.
Andhra Pradesh is working on improving its power and internet infrastructure to support these efforts. Lokesh mentioned plans for three new cable landing stations in Visakhapatnam. These stations will help improve connectivity and make the region more suitable for large-scale data centres. The goal is to build a cable network that is twice the size of the one currently available in Mumbai.
To power the data centres, the state is planning to expand its electricity generation capacity to 10 gigawatts. While most of this power is expected to come from renewable sources, some coal-based plants will also be used to ensure steady supply. Lokesh said the focus is on meeting sustainability requirements without affecting reliability.
