Tech giant Google is planning to scale up its investment in Andhra Pradesh beyond $15 billion over the next five years as part of its expansive data center strategy in India, Chief Minister N. Chandrababu Naidu said on Saturday. Speaking in Visakhapatnam, Naidu described the project as the beginning of a long-term plan to transform the southern coastal state into a global hub for data infrastructure and artificial intelligence services.

“It is a win-win situation to start with $15 billion within five years,” Naidu said, adding that Google’s plan to establish a major data hub in Visakhapatnam marked just the first phase. He suggested that the company could potentially expand further after the initial investment period, driven by growing global demand for AI and digital storage. “Everybody is coming to Andhra Pradesh — this data flow is cost-effective compared to power consumption. That is the game changer,” he said.

The Chief Minister revealed that the state has received commitments for the construction of data centers generating 5.5 gigawatts of capacity from several leading companies, including Reliance Industries Ltd. These projects, he said, would be supported by significant investments in renewable energy sources, creating the infrastructure required for round-the-clock data operations. Google’s new data complex in Visakhapatnam, announced last month, will be integrated with green energy sources and fiber-optic connectivity.

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The tech major’s move to invest in Andhra Pradesh represents its largest investment in India to date. Google is reportedly partnering with AdaniConneX—a joint venture between Adani Enterprises and EdgeConneX—and telecom major Bharti Airtel to develop the project. The investment aligns with the state government’s strategy to accelerate local AI development, digital innovation, and job creation across technology-driven sectors.

Google joins a growing list of US technology firms betting big on India’s digital economy. Amazon has pledged $12.7 billion to expand cloud services in the country by 2030, while OpenAI is exploring a 1-gigawatt data center project. Analysts expect India’s data center investments to exceed $100 billion by 2027, according to estimates from CBRE Group. Naidu said Andhra Pradesh aims to attract $1 trillion in investments within the next decade and maintain an economic growth rate of 15 percent, adding that political stability under Prime Minister Narendra Modi’s government has strengthened investor confidence in India’s digital transformation.

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