Google To Invest ₹5.25 Lakh Crore In Data Centres In India; 1.6GW Data Centres To Go Live In Next 24 Months

Key highlights:

- Rs. 1.75 lakh crore will be allocated towards renewable energy for those data centres.

- Andhra Pradesh aims at 6GW of data centres within five years.

- Google to introduce 1.6GW data centres in next 24 months.

Google is set to invest a massive Rs, 5.25 lakh crore ($6 billion) to build a 1-gigawatt data centre in Visakhapatnam, Andhra Pradesh, marking one of the largest technology infrastructure projects in India. Of this massive budget, Rs. 1.75 lakh crore alone will be allocated toward renewable energy capacity to sustainably power the facility.

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The investment comes as Andhra Pradesh aggressively pursues its goal of building 6GW of data centre capacity within five years—up from almost zero today. State IT Minister Nara Lokesh confirmed to Reuters that 1.6GW worth of data centre projects have already been finalized, with plans for them to go live within 24 months. That alone would exceed India’s current operational capacity of 1.4GW, according to real estate firm Anarock.

As part of its broader digital infrastructure push, the state is also working to establish three submarine cable landing stations in Visakhapatnam, aiming to double the undersea cable capacity that Mumbai currently handles. Lokesh said the state anticipates a power demand of 10 GW from the electricity-intensive data centre industry and is simultaneously upgrading energy infrastructure to meet green targets.

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This development underscores India’s growing importance as a global tech hub, as global giants look to diversify supply chains and reduce reliance on China. Apple, for instance, has ramped up its India operations, with its Foxconn-run facility in Tamil Nadu witnessing significant production growth. The shift comes at a time when US trade policy is becoming more protectionist, with former President Trump pushing tariffs on India at 25 percent. It will be interesting to see how winds change after the tariff announcement.