In a major boost to India’s digital infrastructure push, Google has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to set up a large scale AI focused data centre in Visakhapatnam. The development marks a strategic shift toward decentralising India’s cloud capabilities, with Vizag emerging as the next tech growth corridor after Hyderabad and Bengaluru.
The Big Move
The MoU was signed on December 11, 2024, in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu and Google’s Global Networking & Infrastructure VP Bikash Koley. As per early plans, the tech giant is expected to occupy nearly 80 acres in the upcoming “Data City” being developed in Madhurawada, near Vizag.
This comes after months of engagement between state leadership and Google’s global team, including a high level pitch made by AP IT Minister Nara Lokesh in October 2024 to Google Cloud CEO Thomas Kurian in the US.
Why Vizag?
With growing concerns over infrastructure bottlenecks in India’s traditional data hubs like Mumbai and Chennai, Vizag offers strategic coastal access, uninterrupted power supply, and renewable energy integration ideal for running hyperscale and AI workloads.
The state’s plan to develop a 500-acre Data City has further strengthened its appeal. The project is modeled after Hyderabad’s Hitec City, with anchor tenants like Google and Tata Consultancy Services (TCS) already confirmed.
India’s Data Centre Race
India’s data centre industry is undergoing a seismic shift, driven by cloud adoption, AI acceleration, and government-led digitisation. As of early 2025, the country’s installed data capacity has crossed 950 MW, with projections to double by 2026. Google’s entry into Vizag adds credibility to this shift beyond Tier-1 metros.
The project will also complement other large scale initiatives like AdaniConneX’s 300 MW hyperscale data centre in the same region, forming a strong digital ecosystem powered by both private investment and public policy.
Final Word
For Andhra Pradesh, this is more than a tech win it’s a strategic endorsement of its ambition to be India’s next digital capital. And for Google, it’s a calculated bet on India’s data-first future.
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