The AP State Investment Promotion Board (SIPB), chaired by the Chief Minister Chandrababu Naidu announced the approval of Google’s landmark hyperscale data center in Visakhapatnam, representing a near USD $10 billion investment that ranks among the largest digital infrastructure FDI commitments in India.
The project cements AP’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 modeling, 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 center 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. At the national level, comparable digital infrastructure hubs are modeled to unlock up to USD $2.1 trillion in value addition and support 10 million jobs by 2047.
The SIPB recognized the project as a gamechanger for Andhra Pradesh’s IT ecosystem and approved positioning Visakhapatnam as “AI City Vizag.” 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 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 center will act 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. To maximize ecosystem benefits, the State will develop a dedicated Emerging Technologies Cluster around the data center to attract AI and cloud players, accelerating Vizag’s rise as India’s AI Capital and a global node for digital transformation.
Chief Minister 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.”