‘AI City Vizag’: AP investment board approves Google’s hyperscale data centre

Amaravati: Andhra Pradesh State Investment Promotion Board (SIPB) of the Government of Andhra Pradesh, chaired by the Chief Minister Chandrababu Naidu, on Wednesday announced the approval of Google’s landmark hyperscale data centre in Visakhapatnam.

The State Investment Promotion Board (SIPB) said it has recognised the project as a game-changer for Andhra Pradesh’s IT ecosystem and approved positioning Visakhapatnam as ‘AI City Vizag.’

The centre represents a near USD $10 billion investment that ranks among the largest digital infrastructure FDI commitments in India.

AI-enabled digital economy

The project cements Andhra Pradesh’s leadership in attracting high-value, technology-led investments and accelerates 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 GSDP annually during the initial five years of operations (2028–2032), while supporting approximately 1,88,220 direct and indirect jobs per year across construction, data centre operations, engineering, information technology and supply chain functions.

Beyond 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.

10 million jobs by 2047

At the national level, comparable digital infrastructure hubs are modelled to unlock up to USD $2.1 trillion in value addition and support 10 million jobs by 2047.

This strategic branding mirrors the catalytic effect of early anchor investments that transformed regional technology landscapes and is designed to anchor a global hub for AI, Cloud, and Data Analytics aligned with Digital India, IndiaAI Mission, and Make in India.

This investment underscores global investor confidence in Andhra Pradesh’s governance, policy stability and execution capability.

Andhra Pradesh open to business policies

Andhra Pradesh offers single-window clearances, proactive facilitation, reliable power and water, renewable energy integration, and plug-and-play industrial infrastructure, coordinated by the Economic Development Board (EDB) and the Department of Information Technology, Electronics & Communications (ITE&C) to ensure long-term operational stability for hyperscale projects.

The data centre will act as a cornerstone for modern economic infrastructure - accelerating AI, cloud computing, IoT, 5G and e-governance platforms. It is expected to catalyse ancillary sectors such as power, fibre optics, real estate, and telecommunications; drive upgrades in road, power, and fibre 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 centres integrated with renewable energy sources.

To maximise ecosystem benefits, the State will develop a dedicated Emerging Technologies Cluster around the data centre to attract AI and cloud players, accelerating Vizag’s rise as India’s AI Capital and a global node for digital transformation.

The Government will closely coordinate with Google and partners to ensure timely execution, sustainable operations, and inclusive community development.

Speaking on the occasion, CM Naidu said, “This is not just an investment; it’s a vision being realised. 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 Centre in Vizag will anchor our journey towards becoming the AI capital of India and a global hub for digital innovation.”

The highlights of the projects are:

Investment: Nearly USD $10 billion FDI in hyperscale data centre infrastructure in Visakhapatnam

GSDP impact: Rs 10,518 crore average annual contribution during 2028–2032

Employment: 1,88,220 direct and indirect jobs supported per year across multiple sectors

Cloud spillovers: Rs 9,553 crore annual productivity-led impact; Rs 47,720 crore over five years

National modelling: Up to USD $2.1 trillion value addition and 10 million jobs by 2047 from large digital hubs

Policy and facilitation: Single-window clearances, reliable utilities, renewable integration, and plug-and-play parks led by EDB and ITE&C

Strategic branding: “AI City Vizag” to anchor a world-class AI, Cloud, and Data Analytics hub