Google to Build Largest AI Hub in India with $15B Funding

Staff Correspondent
16 minutes ago
5 min read

Key Takeaways

Google is investing $15 billion to build its largest AI hub outside the U.S. in Visakhapatnam, Andhra Pradesh, aiming to power India’s AI-driven future and serve Asia and beyond.
The project includes a gigawatt-scale data center, subsea cable infrastructure, and partnerships with Bharti Airtel and AdaniConneX, positioning Visakhapatnam as a critical global digital connectivity hub.
This investment aligns with India’s Swadeshi push and AI mission, creating over 100,000 jobs and offering localized AI infrastructure crucial for fintech, banking, and BFSI sectors.

Google just made a move that has everyone talking.

Here's the thing about billion-dollar bets. They're rarely just about the money!

When Google announced it's pouring $15 billion into India over the next five years to build a 1-gigawatt AI data center hub in Visakhapatnam, it wasn't just making headlines.

It was making a statement.

This is Google's most significant investment outside the United States.

And it's happening at a fascinating time- right when India's pushing its "Swadeshi" (Made-in-India) movement and reducing dependence on U.S. tech giants.

Let's unpack what's really going on here.

The Timing Couldn't Be More Ironic

On the surface, this looks like another big-tech mega-investment. But look closer, timing matters.

Just weeks after President Donald Trump slapped a 50% tariff on Indian imports in August 2025, Prime Minister Narendra Modi began rallying the “swadeshi” movement- pushing for India-made digital products.

The message was clear: reduce dependency on U.S. tech platforms.

Ironically, that may have prompted Google to double down on its commitment to India. A counterpunch move?

After all, the company already runs two major cloud regions in Delhi and Mumbai, employing over 14,000 people across the country. But this new hub, with plans to scale “to multiple gigawatts,” according to Google Cloud CEO Thomas Kurian, is on an entirely different level.

Why Visakhapatnam? A Smart, Strategic Pick

Visakhapatnam isn't exactly Silicon Valley. But that's precisely the point.

The port city in Andhra Pradesh is being transformed into India's AI nerve center- and the choice is calculated down to the last detail.

Thomas Kurian, Google Cloud CEO, said the hub will be "the largest AI hub we are going to be investing in anywhere in the world outside of the United States."

Here's what makes Vizag special-

Connectivity Powerhouse

Google's bringing its subsea cable infrastructure to Visakhapatnam, connecting it to over two million miles of existing terrestrial and undersea cables. This creates route diversity beyond Mumbai and Chennai, making Vizag a global connectivity hub.

"We see it not just becoming a landing station for a large number of cables, but also providing a digital backbone connecting different parts of India," Kurian explained.

Strategic Partnerships

Google isn't going solo. It's partnering with:

Bharti Airtel to build the data center and Cable Landing Station (CLS)
AdaniConneX (Adani Group's data center JV with EdgeConneX) for core infrastructure and green energy solutions

These partnerships bring local expertise, government connections, and sustainability credentials.

What's Inside This $15 Billion AI Hub?

This isn't just rows of servers in a warehouse.

Google's calling it a "full-stack AI hub"- and that means serious tech firepower.

Gigawatt-Scale Compute Capacity

The facility starts at 1 gigawatt but will scale to "multiple gigawatts" over time.

That's enough power to support next-generation AI applications for India and beyond.

Tensor Processing Units (TPUs)

Google's custom-designed AI accelerators, which power Gemini, Google Search, YouTube, Gmail, and Google Maps, will enable local AI processing.

TPUs are optimized for training and inference of AI models, offering high reliability and energy efficiency.

Gemini Model Access

Indian developers and enterprises will get access to Google's most advanced AI models, including the Gemini family, through Vertex AI and other platforms.

This democratizes cutting-edge AI for Indian businesses, researchers, and startups.

Consumer Services Integration

The hub will support everyday Google services—Search, YouTube, Gmail, Google Ads—bringing AI-powered experiences closer to Indian users with lower latency.

"We see this hub not just serving India but from India serving Asia and other parts of the world," Kurian emphasized.

Government's Vision

Google’s AI hub launches in India with Indian lawmakers. Image credits- Techcrunch

At the launch event in New Delhi, Union IT Minister Ashwini Vaishnaw aligned the investment with the government's India AI Mission goals.

Prime Minister Modi himself praised the move, saying it will contribute to the "Viksit Bharat" (Developed India) Vision and strengthen India's position as a global tech leader.

But here's where it gets interesting.

Vaishnaw urged Google to consider India's Andaman Islands as the next major hub for global internet data transfer, noting that "Singapore is all choked."

He even proposed linking Visakhapatnam with Sittwe, Myanmar, to improve connectivity in India's northeastern states.

The Swadeshi Paradox

Let's circle back to the elephant in the room.

India is promoting swadeshi apps and reducing dependence on U.S. tech, yet Google just made its largest-ever India investment.

How does that work?

Pragmatism over ideology.

India needs world-class AI infrastructure now, and Google can deliver it faster than anyone else.

At the same time, promoting local alternatives like Zoho, Arattai, and Mappls creates competitive pressure and ensures India isn't entirely dependent on one ecosystem. It's a balancing act- leverage foreign investment while building homegrown capabilities.

Gopal Vittal, Vice Chairman and Managing Director of Bharti Airtel, framed it perfectly:

"This partnership with Google is a defining moment in India's digital future. By combining world-class AI infrastructure with our nation's extraordinary talent, we are laying the foundation for India to become a leader in the AI-driven era."

Why Fintech and Banking Pros Should Care

If you're in fintech, banking, or financial services, here's why this matters. With local TPU infrastructure and Gemini models, Indian fintech firms can now build sophisticated AI applications —fraud detection, personalized banking, credit scoring, algorithmic trading —with dramatically reduced latency. Having computing capacity in India also helps meet regulatory requirements around data residency and privacy, which is critical for the BFSI sector compliance.

Beyond compliance, local infrastructure means lower data transfer costs and faster processing, a game-changer for high-frequency trading, real-time payments, and customer-facing AI apps. Early adopters who leverage this infrastructure can outpace competitors still relying on distant data centers or outdated tech stacks, giving them a significant competitive edge in an increasingly AI-driven financial services landscape.

The Bottom Line

For years, India's been called the world's back office.

That narrative is changing fast.

Google's $15 billion isn't charity, it's strategy. India offers over 1.5 million engineering graduates annually, a population of 1.4 billion with growing digital adoption, and government support through the India AI Mission.

This hub positions India as an AI export center, developing applications and models not only for domestic use but also for Asia and beyond.

As Sundar Pichai put it: "This hub will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country."

If you thought India was only a software back office, think again!