According to reports, Alphabet-owned Google intends to invest $10 billion, or around INR 88,774.2 crore, to construct a cluster of data centers with a 1 GW capacity spread across three campuses in Visakhapatnam, Andhra Pradesh.

According to sources cited by ET, the cluster will have three data center campuses with high-capacity underwater cables, specialized cable landing stations, and a vast network of metro fiber and telecommunications lines.

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The data centers will be a key component of India’s aspirations to become a global powerhouse for digital and artificial intelligence infrastructure, and they are anticipated to be operational by July 2028.  On October 14, Andhra Pradesh IT Minister Nara Lokesh is scheduled to finalize the deal with Google executives.

The State Investment Promotion Board, which is led by Chief Minister N Chandrababu Naidu, will sanction the project today, the newspaper also stated.

According to the publication, Visakhapatnam’s data center cluster would be the biggest in Asia.

Google has been contacted by Inc42 for feedback on the development.  As responses are received, the story will be updated.

Notably, over the next five years, the state government hopes to construct six gigawatts of data centers.

Alphabet was reportedly on track to invest $6 billion in Andhra Pradesh to construct a 1 GW data center and related power infrastructure in July.

“We’ve made some public announcements, such as Sify (a 550 MW data center to be constructed in the state).”  Some announcements are not yet available to the general public.  We will make those announcements in October,” Lokesh said at the time to Reuters.

This occurs at a time when the need for data centers is increasing due to the rapid adoption of AI and the growing prevalence of smartphones.  The data center industry in India is expected to increase from $4.5 billion in 2023 to $9.3 billion by 2027 and over $11.6 billion by 2032, making it one of the largest markets in terms of smartphone usage and AI adoption.

OpenAI, the parent company of ChatGPT, is also seeking to establish a data center in India with a minimum capacity of 1 GW, while Reliance is constructing a data center in Jamnagar.  After Sam Altman’s trip to India, the new facility would be finalized, which would be a significant step forward for “Startgate” in Asia.