Google just announced its biggest AI infrastructure bet outside the US - a staggering $15 billion investment to build data center capacity in southern India over the next five years. The move signals how aggressively tech giants are racing to secure AI computing power as global demand explodes, while positioning India as the new battleground for cloud supremacy.
Google just made its boldest move yet in the global race for AI dominance, committing $15 billion to build what will become its largest artificial intelligence hub outside the United States. Google Cloud CEO Thomas Kurian announced the massive investment at an event Tuesday, targeting southern India's Andhra Pradesh state for a five-year infrastructure buildout that dwarfs most corporate spending pledges this year.
The deal represents a significant escalation from initial reports. Andhra Pradesh's Human Resources Development Minister Nara Lokesh had pegged the project at $10 billion just Monday, but Google's final commitment came in 50% higher. "This is just the beginning," Lokesh said in a post on X, describing "a year of intense discussions and relentless effort" that led to the agreement.
Google's Indian subsidiary Raiden Infotech will develop three separate campuses across Visakhapatnam, creating a 1-gigawatt computing powerhouse designed specifically for AI workloads. The scale is staggering - enough capacity to power a small city, but dedicated entirely to training and running the next generation of artificial intelligence models.
This investment surge isn't happening in isolation. Google already bumped its global capital expenditure forecast to $85 billion for 2025, up from $75 billion in February, citing "strong and growing demand for our Cloud products and services" during second-quarter earnings in July. That same month, the company announced plans to pour $25 billion into US data center infrastructure over two years.
But India represents something different - a chance to build from scratch in a market where AI adoption is accelerating faster than almost anywhere else. According to Economic Times reporting, Andhra Pradesh officials plan to scale the state's total computing capacity to 6 gigawatts over the next three years - making it one of the world's largest data center hubs.
