Andhra Pradesh Secures Landmark $6 Billion Google Data Centre Deal

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The Indian state of Andhra Pradesh has reportedly finalized a monumental $6 billion agreement with Google for the establishment of a large-scale data center facility. This significant investment, according to government sources, marks Google’s first major data center commitment in India and is poised to become Asia’s largest in terms of both capacity and capital expenditure.

The colossal 1-gigawatt (GW) data center is slated for construction in the port city of Visakhapatnam. A substantial portion of this investment, approximately $2 billion, is specifically earmarked for developing renewable energy capacity to power the facility, aligning with global trends toward sustainable digital infrastructure. This move shows Google’s broader multi-billion-dollar expansion of its data center portfolio across the Asia-Pacific region, which also includes projects in Singapore, Malaysia, and Thailand.

Andhra Pradesh’s Information Technology Minister, Nara Lokesh, has been actively pursuing investments to bolster the state’s digital infrastructure. He recently indicated that Andhra Pradesh has already secured investments for data centers totaling 1.6 GW and aims for an ambitious 6 GW of data center capacity within the next five years, a significant leap from its current near-zero base. The initial 1.6 GW of projects, including Google and a 550 MW facility by Sify Technologies, are expected to be operational within the next two years.

To further enhance connectivity crucial for such large-scale data operations, the state is also working to establish three new cable landing stations in Visakhapatnam. These stations, which connect to undersea cables, are vital for fast and reliable connections to global networks and are expected to significantly boost the region’s digital gateway capabilities, potentially rivalling established hubs like Mumbai.

The development of such a large data center complex is expected to have a transformative impact on Andhra Pradesh’s economy. Beyond the direct investment, it will create numerous job opportunities in technology, operations, and support services. The project also positions Visakhapatnam as a burgeoning IT and digital hub, attracting further investments and fostering a robust ecosystem for technology and related industries. While specific details from Google and the Andhra Pradesh government are anticipated in October, this reported deal signifies a major leap forward for India’s digital infrastructure ambitions and Andhra Pradesh’s economic development.