Google is investing $15 billion. Reliance-backed Digital Connexion has introduced plans value billions extra. It has reportedly unveiled a Rs 98,000 crore (about $11 billion) AI infrastructure plan, whereas Meta can be mentioned to be planning a major presence within the metropolis — all pointing to an unlikely vacation spot for India’s subsequent AI infrastructure growth: Visakhapatnam (Vizag).
What was as soon as primarily often called a port metropolis is now being seen as the inspiration of a brand new form of expertise ecosystem: one constructed round knowledge centres, subsea cables, energy infrastructure and the computing capability required to energy synthetic intelligence.
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Google, which just lately introduced its multi-billion-dollar AI Hub in Visakhapatnam, mentioned the town provides a uncommon mixture of connectivity, clear power potential and industrial capabilities that make it uniquely suited to the following section of AI-driven progress.
“Visakhapatnam has an intensive shoreline that presents India with a definite alternative to strengthen the nation’s connectivity and digital resilience. It additionally has vital potential for brand spanking new clear power, a longtime industrial provide chain, and a proficient native workforce,” Alexander Smith, Principal, International Infrastructure and Vitality, Asia Pacific, Google, informed ET On-line in an emailed response.
“These strengths led us to see the shared alternatives for progress in Visakhapatnam and gave us confidence to use rules of accountable AI infrastructure growth in partnership with native business and governments—in a means that each advances the area’s financial progress trajectory and meets Google’s international operational necessities,” he added.
Google is just not alone in increasing its footprint within the metropolis. Digital Connexion, a joint venture between Reliance Industries, Brookfield and Digital Realty, has also announced plans to invest Rs 98,000 crore by 2030 to establish a 1 GW AI-native data centre cluster across 400 acres in Visakhapatnam, ET had reported in November 2025.
The proposed campus is anticipated to characteristic high-density AI compute infrastructure, superior liquid-cooling expertise and devoted renewable power help, underscoring Vizag’s emergence as a next-generation AI infrastructure hub.
ET had also reported last November that Meta was planning a significant AI infrastructure presence in Visakhapatnam by leasing capacity at a proposed 500 MW hyperscale data centre being developed by Sify Technologies. The report mentioned the power would help Meta’s Waterworth subsea cable mission, with the cable anticipated to land at Sify’s cable touchdown station within the metropolis, additional strengthening Vizag’s position as a worldwide digital connectivity hub.
Meta and Reliance Industries had not but responded to ET On-line’s request for feedback on the time of this report’s publication.
Greater than a knowledge centre mission
Google’s imaginative and prescient for Visakhapatnam extends far past a traditional knowledge centre campus.
The corporate sees the town rising as a crucial connectivity gateway linking India to international AI networks via a mixture of subsea and terrestrial cable infrastructure.
By way of its America-India Join initiative, Google plans to ascertain subsea routes connecting Visakhapatnam with Singapore, South Africa and Australia whereas additionally creating direct fibre connectivity to Chennai and Mumbai.
The target, in response to the corporate, is to show the town right into a bi-directional gateway able to each bringing superior AI companies into India and permitting Indian builders, startups and enterprises to deploy merchandise globally via high-speed digital infrastructure.
Google argued that such connectivity will turn out to be more and more essential as AI functions demand high-bandwidth, low-latency networks to help companies reminiscent of Gemini and different frontier AI fashions. In Google’s view, knowledge centres are just one piece of the puzzle; the cables connecting them are equally crucial to creating an AI ecosystem.
The funding can be tied intently to power infrastructure.
“Being additive to the grid and to India’s power wants means investing in new initiatives that will not occur with out Google’s involvement,” Smith mentioned.
“We’re already actively working with companions on plans to construct new transmission traces, clear power era, and power storage options to make sure that India’s digital financial system continues to develop alongside the purpose of accelerating the reliability and affordability of energy for native communities.”
The corporate mentioned it intends to help new clear power era, storage methods and transmission infrastructure within the area as a part of its broader dedication to function on carbon-free power.
Additionally learn: After Google, Ambani’s Reliance to set up 1 GW data centre in Andhra Pradesh
Why AI corporations are abruptly taking a look at Vizag
Analysts say the town’s rising enchantment displays a broader shift in how expertise infrastructure is being constructed within the AI period.
“AI is basically altering infrastructure necessities,” mentioned Vinish Bawa and Shubhojeet Chakravarty of PwC India.
“Conventional knowledge centre racks function at 5–15 kW, whereas AI-optimised racks can exceed 60–100 kW, growing energy density by as much as 10x.”
Which means energy availability, cooling effectivity, land scalability and connectivity have turn out to be as essential as expertise swimming pools and workplace house.
PwC mentioned places that may present built-in entry to energy, land and community capability have gotten more and more helpful as AI workloads develop.
Aakash Agrawal, Affiliate Director, Digital and New Age Enterprise at Anand Rathi Funding Banking, mentioned established expertise hubs are starting to face the challenges that include maturity.
“Most established expertise cities in India are dealing with the challenges that include success—larger prices, congestion and infrastructure constraints. Vizag provides one thing completely different. It nonetheless has room to construct at scale,” he mentioned.
Aniket Dani, Director, Crisil Intelligence, informed ET On-line that the town’s entry to lower-cost land, renewable power assets, port infrastructure and submarine cable connectivity provides it key benefits over extra saturated expertise hubs.
Google’s largest infrastructure funding exterior the US
For Google, Visakhapatnam isn’t just one other growth mission.
In accordance with the corporate, the AI Hub represents Google’s largest infrastructure funding exterior the USA to this point and is designed to combine computing infrastructure, connectivity, clear power, workforce growth and neighborhood engagement right into a single ecosystem.
“Our multi-billion funding within the Google AI Hub is a long-term anchor dedication to convey the shared imaginative and prescient of India’s AI hall in Visakhapatnam to life,” Smith mentioned.
“Visakhapatnam will quickly host a few of the most superior digital infrastructure in Asia, which guarantees to behave as a catalyst for innovation that may allow native communities and companies to be on the forefront of fixing challenges as soon as thought inconceivable.”
He added that establishing the AI Hub would contain “superior and sustainable knowledge centres, new connectivity, clear power, accountable water stewardship, profession pathways, and deep steady engagement with the neighborhood.”
Google mentioned the infrastructure being inbuilt Visakhapatnam will ultimately help customers, companies and builders not solely throughout India but in addition South Asia and the broader Asia-Pacific area. The corporate additionally mentioned it has begun skilling programmes for college students, educators, girls entrepreneurs and coastal fishing communities as a part of its broader effort to construct an AI ecosystem across the mission.
The Andhra Pradesh issue
Business consultants say geography alone doesn’t clarify Vizag’s rise. A serious motive the town has attracted giant investments is the proactive position performed by the Andhra Pradesh authorities.
Anjani Kumar, Associate at Deloitte India, mentioned Andhra Pradesh has distinguished itself via a mixture of aggressive incentives, land allocation, quicker approvals and infrastructure planning.
In accordance with Kumar, the state has provided customised help packages for strategic initiatives, whereas additionally making a coverage framework that permits giant data-centre operators better flexibility in sourcing renewable energy.
Kumar famous that round 600 acres had already been allotted throughout a number of places round Visakhapatnam and that approvals have been being pushed via high-level authorities mechanisms to speed up mission execution.
BCG’s Sudhanshu Chawla echoed that evaluation.
“The state position has been essential—arguably one of many largest variables up to now,” Chawla mentioned.
Agrawal of Anand Rathi mentioned initiatives of this scale require confidence round land, approvals, energy provide and long-term coverage stability.
“Andhra Pradesh has been proactive in positioning Vizag as a vacation spot for these investments, which is a crucial start line,” he mentioned.
Additionally learn: Andhra government boosts land allotment for Google AI data centers to 600 acres
India’s likelihood to maneuver up the AI worth chain
Google believes the chance extends past internet hosting knowledge centres.
“We see a generational alternative for India not simply to be an energetic participant within the AI financial system, however to architect it,” Smith mentioned.
“For India and Andhra Pradesh, the Google AI Hub in Visakhapatnam provides a safe and superior spine for digital innovation to proceed to speed up according to India’s objectives.”
In accordance with Google, early building exercise is already creating alternatives for native producers, clear power builders and engineering expertise. The corporate mentioned Indian corporations are more and more constructing superior cooling tools and structural elements for hyperscale knowledge centres, whereas experience in good grids and power storage can be increasing.
The corporate argues that these developments may assist India evolve from being primarily a client of AI applied sciences right into a producer and exporter of AI infrastructure capabilities.
Crisil Intelligence’s Dani added that a big home compute base may strengthen India’s technological self-reliance by decreasing dependence on abroad compute infrastructure whereas enhancing entry to AI assets for startups, enterprises, researchers and authorities companies.
Equally, Chawla of BCG mentioned home large-scale capability may help India’s sovereign AI ambitions and scale back reliance on overseas cloud infrastructure.
Can Vizag turn out to be India’s AI capital?
That is still the most important query.
Whereas enthusiasm round Visakhapatnam is rising, most analysts warning that the town continues to be at an early stage of growth.
“Vizag continues to be an early-stage data-centre market, however is being positioned as ‘AI Patnam’,” Kumar of Deloitte mentioned, noting that the town already has a data-centre pipeline exceeding 3.25 GW throughout roughly 10 websites.
Chawla struck a equally cautious notice.
“It is too early to name Vizag a ‘capital,’ however the early alerts are notable for a metropolis that had little data-centre presence till just lately,” he mentioned.
For now, nevertheless, Visakhapatnam finds itself on the centre of a uncommon convergence of expertise, power and infrastructure funding.