Google is poised to make a $10 billion investment to create a 1-gigawatt data center complex in Visakhapatnam, representing the tech company's inaugural investment of this scale in India. The agreement specifics are anticipated to be completed during discussions between Google leadership and Andhra Pradesh IT and electronics minister Nara Lokesh in New Delhi on October 14.

Reports indicate that the infrastructure will consist of three data center locations situated in Adavivaram and Tarluvada villages within Visakhapatnam district, plus Rambilli village in Anakapalli district. These sites are planned to begin operations by July 2028.

Building this complex will require deploying three major submarine cables, establishing specialized cable landing facilities, implementing high-capacity metropolitan fiber networks, and developing telecommunications infrastructure.

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The Andhra Pradesh State Investment Promotion Board, led by Chief Minister N Chandrababu Naidu, is anticipated to approve the investment plan this week. This initiative will represent Google's most significant direct financial commitment to India's digital sector.

Naidu had previously suggested modifications to the Information Technology Act and Copyright Act to support data city development. Subsequently, the central government distributed a preliminary policy framework for data center operations.

In May of this year, Google's Asia-Pacific division made a visit to Visakhapatnam, where Lokesh personally guided them through examinations of several prospective locations. The planned data center complex is set to become a component of India's inaugural international AI infrastructure center -- an extensive digital infrastructure area concentrated within a designated geographic region.

Major technology companies fuel data center requirements.

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Presently, Amazon, Microsoft, and Google collectively represent approximately 30 percent of India's data center needs, with this proportion expected to grow to 35 percent, as reported by real estate advisory firm Anarock Capital.

Previously, Alok Bajpai, who serves as managing director of India operations for NTT Global Data Centers, mentioned that contracts from leading tech corporations for hyperscale facilities remained unsigned, since these companies were temporarily postponing their commitments. Hyperscale operators manage enormous data centers designed for exceptional scalability to accommodate extensive computational demands.

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According to India Ratings and Research, India's data center sector is projected to draw investments ranging from Rs.1.6 trillion to Rs.2.0 trillion during the upcoming five to seven-year period. Data center firms have revealed intentions to introduce 7.1 GW of additional capacity, though approximately 60 percent of these projects are still in preliminary phases.