In a historic development, global technology leader Google has announced an investment of nearly USD 10 billion (₹88,000 crore) in Andhra Pradesh. The funds will be directed towards building a 1-gigawatt hyperscale data centre cluster in Visakhapatnam, making it Asia’s largest and Google’s biggest data hub outside the United States.
This mega project, approved by the State Investment Promotion Board (SIPB) under Chief Minister N. Chandrababu Naidu, represents one of India’s largest FDI commitments in the tech sector and a turning point for the country’s digital economy.
Google’s Data Centre Project: Scale and Significance
- The project will be the largest data centre cluster in Asia, situated in Visakhapatnam.
- It is part of Andhra Pradesh’s ambitious “AI City Vizag” initiative, aimed at transforming the city into a global hub for AI, cloud computing, and digital services.
- The cluster will also integrate renewable energy sources, reflecting Google’s commitment to sustainable green infrastructure.
Economic Impact on Andhra Pradesh
According to independent studies and Google’s estimates:
- The project will add ₹10,518 crore annually to Andhra Pradesh’s GSDP during 2028–2032.
- Productivity-led benefits are projected to bring an additional ₹9,553 crore annually, totaling nearly ₹47,720 crore in five years.
- Around 1.88 lakh direct and indirect jobs will be created every year across IT, construction, operations, and allied industries.
This investment will also generate long-term tax revenue for the state once initial incentives expire, strengthening Andhra Pradesh’s fiscal base.
Policy Push That Enabled the Deal
The investment comes after major policy changes:
- The Centre revised the National Data Centre Policy to provide 20-year tax exemptions for mega projects.
- Andhra Pradesh offered single-window clearances, GST input tax credits, and industrial infrastructure support.
- Land and utilities were cleared on a priority basis to make Andhra Pradesh a competitive choice over other states.
Challenges Ahead
The project faces land acquisition hurdles near Tarluvada, Anandapuram (Visakhapatnam), with legal disputes and compensation negotiations ongoing. The government has offered ₹50 lakh per acre, along with jobs, housing plots, and shops for affected farmers.
Despite challenges, the state government has assured quick resolution to ensure the project’s timely rollout.
A Turning Point for India’s Digital Future
This investment signals a new era in India’s digital growth:
- Andhra Pradesh will emerge as a leading global destination for data centres and AI-driven industries.
- The project is expected to attract startups, software firms, and global tech companies to Visakhapatnam.
- India’s role will expand from a digital consumer market to a strategic hub for digital infrastructure.
News Credit: Economic Times, Business Standard, Times of India
By
