VIJAYAWADA: The State Investment Promotion Board (SIPB) has approved Google’s landmark hyperscale data center project in Visakhapatnam, marking a significant investment of nearly $10 billion.
This investment is one of the largest digital infrastructure Foreign Direct Investment (FDI) commitments in India and solidifies Andhra Pradesh’s leadership in attracting high-value, technology-driven investments.
The project is expected to accelerate the State’s transition to an AI-enabled digital economy.
According to independent assessments by Access Partnership (2025) and Google’s economic modelling, the project is projected to contribute an average of Rs 10,518 crore to the Gross State Domestic Product (GSDP) annually during the initial five years of operations (2028-2032).
Additionally, it is expected to support approximately 1,88,220 direct and indirect jobs per year across various sectors, including construction, data center operations, engineering, information technology, and supply chain functions.
Beyond its direct operations, Google Cloud’s productivity-led impact is expected to add Rs 9,553 crore annually, amounting to Rs 47,720 crore over five years, through digital enablement across the economy.
SIPB lays emphasis on ‘AI City Vizag’ concept
The SIPB meeting, chaired by Chief Minister N Chandrababu Naidu, recognized the project as a game-changer for Andhra Pradesh’s IT ecosystem and approved the positioning of Visakhapatnam as “AI City Vizag.” This strategic branding aims to anchor a global hub for AI, cloud, and data analytics, aligned with initiatives such as Digital India, IndiaAI Mission, and Make in India.
The data center will serve as a cornerstone for modern economic infrastructure, accelerating AI, cloud computing, IoT, 5G, and e-governance platforms. It is expected to catalyze ancillary sectors such as power, fiber optics, real estate, and telecommunications, drive upgrades in road, power, and fiber connectivity, and enhance state revenues via SGST, electricity duty, and property tax post the incentive phase. The project is aligned with the state’s push for green data centers integrated with renewable energy sources.
Speaking on the occasion, Chief Minister N Chandrababu Naidu said, “This is not just an investment; it’s a vision being realized. Andhra Pradesh is proud to host one of the world’s largest technology investments, a testament to our policy strength, governance, and our people’s capability. The Google Data Center in Vizag will anchor our journey towards becoming the AI capital of India and a global hub for digital innovation.”
