Alphabet’s (GOOGL) Google has committed to investing $10 billion in its first India data center cluster in the state of Andhra Pradesh. The project is designed to deliver 1 gigawatt (GW) of capacity through a cluster of data centers, a first of its kind in India. The project will span across three campuses in the villages of Adavivaram, Tarluvada, and Rambilli.
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The cluster is expected to begin operations in July 2028, and is projected to create thousands of jobs while boosting the local economy. Once completed, it will be one of the largest data center clusters in Asia.
Google Eyes India for AI Expansion
The project would mark Google’s direct investment in India’s digital infrastructure and aligns with its mission to expand in one of its fastest-growing markets. The cluster is being positioned as a flagship anchor for India’s first international AI Infrastructure Hub, designed to drive the growth of both the state’s and the nation’s digital economy and research ecosystem.
The project involves the installation of extensive new digital infrastructure, including three high-capacity submarine cables, dedicated cable landing stations, and a wide network of metro fiber optic lines. These components will support cutting-edge research, expand cloud capabilities, and deliver resilient digital services with high-speed, high-capacity connectivity.
The project is pending approval by the Andhra Pradesh State Investment Promotion Board and the state’s IT minister Nara Lokesh. Google executives are scheduled to meet him in New Delhi on October 14, 2025, to finalize the agreement.
Global Tech Giants Focus on India’s AI Hub Potential
Global tech biggies are expanding their operations in India’s rapidly growing digital economy. Amazon Web Services (AMZN) plans to invest up to $8.2 billion in India to promote AI infrastructure and services in this booming economy.
Meanwhile, Microsoft (MSFT) is making a massive push into India with a $3 billion investment to expand its Azure AI and cloud services. Additionally, ChatGPT maker OpenAI (PC:OPAIQ) is reportedly scouting local partners and land in India to build AI data centers as part of its $500 billion Stargate project.
Is GOOGL a Good Stock to Buy?
Analysts remain highly optimistic about Alphabet’s long-term outlook. On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 29 Buys and eight Hold ratings. The average Alphabet price target of $247.06 implies that shares are almost fully valued at current levels. Year-to-date, Google stock has gained 30.3%.
