Google's historic hyperscale data center project in Visakhapatnam, which represents a substantial investment of around $10 billion, has been approved by the State Investment Promotion Board (SIPB).
Andhra Pradesh's leadership in luring high value, tech driven investments is cemented with this investment, which is among the biggest FDI commitments in India for digital infrastructure.It is anticipated that the project will hasten the State's shift to a digital economy powered by AI.
Independent evaluations by Google's economic modeling and Access Partnership (2025) estimate that over the project's first five years of operation (2028–2032), it will add an average of Rs 10,518 crore to the Gross State Domestic Product (GSDP) yearly.
Furthermore, it is anticipated to sustain roughly 1,88,220 direct and indirect jobs annually in a variety of industries, such as supply chain management, engineering, data center operations, construction, and information technology.
Through digital enablement across the economy, Google Cloud's productivity led impact is anticipated to add Rs 9,553 crore annually, or Rs 47,720 crore over five years, beyond its direct operations.
Chief Minister N Chandrababu Naidu presided over the SIPB meeting, which accepted Visakhapatnam's designation as "AI City Vizag" and acknowledged the initiative as a game changer for Andhra Pradesh's IT industry.
In line with programs like Digital India, IndiaAI Mission, and Made in India, this strategic branding seeks to establish a global center for AI, cloud, and data analytics.
The data center will accelerate AI, cloud computing, IoT, 5G, and e-governance platforms, and it will be a key component of contemporary economic infrastructure.
After the incentive period, it is anticipated to boost state revenues through SGST, electricity duty, and property tax, push improvements in road, power, and fiber connectivity, and stimulate auxiliary industries including power, fiber optics, real estate, and telecommunications.
The project supports the state's initiative to build green data centers that use renewable energy.
