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Google announces $15 billion AI data centre in India, its biggest investment yet

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Google will invest $15 billion over the next five years to build a major artificial intelligence (AI) data centre in the southern Indian state of Andhra Pradesh, marking the company’s largest-ever investment in India. The data centre, to be located in Visakhapatnam, will have an initial capacity of 1 gigawatt, serving as Google’s largest AI hub outside the United States.

The announcement came during an event in New Delhi attended by India’s finance and technology ministers. Google Cloud CEO Thomas Kurian said the project aims to support India’s growing AI ambitions: “This long-term vision we have is to accelerate India’s own AI mission.”

The investment underscores Google’s commitment to expanding its global data infrastructure, with the company planning to spend around $85 billion this year worldwide to boost cloud and AI capabilities.

However, the timing of the announcement coincides with rising diplomatic tension between Washington and New Delhi, following U.S. tariffs on Indian goods and calls within India to boycott foreign products. Despite this, Google said the initiative “creates substantial economic and societal opportunities for both India and the United States.”

Google will partner with Adani Group and Airtel to build the new facility and its accompanying international subsea gateway, which is expected to generate over 188,000 jobs, according to earlier state estimates.

The project places Google alongside Microsoft and Amazon, who have also invested heavily in India’s rapidly expanding data centre market — home to nearly a billion internet users and a booming digital economy.

Accenture plans new Andhra Pradesh campus, aims to add 12,000 jobs in India

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Accenture has proposed building a new campus in Visakhapatnam, in the southern Indian state of Andhra Pradesh, with plans to eventually create 12,000 jobs, sources told Reuters. The move would significantly expand its presence in India, which is already Accenture’s largest global hub with over 300,000 employees out of 790,000 worldwide.

The proposal seeks around 10 acres of land under a new Andhra Pradesh policy offering large firms leased land at a token rate of 0.99 rupees ($0.0112) per acre in exchange for job creation. The request is currently under government review but is expected to be approved, according to officials familiar with the matter.

The state recently approved similar projects by Tata Consultancy Services (TCS) and Cognizant, which together plan to generate about 20,000 jobs in Visakhapatnam. Cognizant has pledged $183 million, while TCS has earmarked about $154 million for its facility.

Accenture has not disclosed its planned investment, but if approved, the Visakhapatnam campus would mark another step in the tech sector’s push into Tier-2 Indian cities. Companies are expanding beyond major hubs like Bengaluru and Hyderabad to tap lower land, wage, and rental costs, while benefiting from easier local hiring.

The expansion also comes as the Indian IT sector faces global headwinds:

  • U.S. President Donald Trump’s new $100,000 H-1B visa fee could hurt Indian firms, which are the largest users of the program.

  • A proposed 25% U.S. outsourcing tax could lead clients to delay or renegotiate contracts, adding further uncertainty.

Despite these challenges, India remains a cornerstone of global IT operations, and Andhra Pradesh is positioning itself as a rising destination for major technology investments.

Adani Solar Deal Under Bribery Scrutiny Approved Despite Officials’ Warnings

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The approval of a $490 million solar power deal in Andhra Pradesh, linked to Adani Green and now under U.S. bribery scrutiny, occurred despite warnings from finance and energy officials, according to records and interviews reviewed by Reuters.

The deal began on September 15, 2021, when the Solar Energy Corporation of India (SECI) unexpectedly approached the state government with an offer for India’s largest renewables contract. Despite Andhra Pradesh’s 2019 energy forecast showing no immediate need for solar power, the state cabinet led by then-Chief Minister YS Jagan Mohan Reddy gave the deal preliminary approval the next day.

By December 1, 2021, Andhra Pradesh signed a procurement agreement with SECI for 7,000 megawatts of solar power, 97% of which would go to Adani Green. The unusually swift approval—57 days from SECI’s approach to regulatory consent—has drawn attention, with critics describing the pace as highly irregular.

The U.S. Department of Justice indicted Adani and seven others in November, alleging that $228 million in bribes were offered to influence Andhra Pradesh’s decision to purchase the solar power. While Adani Group has denied all allegations as “baseless,” state and federal documents reveal that political leaders ignored financial warnings.

Finance and energy officials had raised concerns over the deal’s cost and timing. The finance department warned on October 28, 2021, that falling solar prices would make future contracts cheaper and questioned the need for a 25-year agreement, given that supply would begin only in 2024. Additionally, the department noted Andhra Pradesh had significant leverage as the buyer.

Despite this advice, the cabinet proceeded with the deal, “overruling the finance remark,” according to meeting minutes. Andhra Pradesh agreed to a rate of 2.49 rupees per kilowatt-hour, but analysts suggest the price will rise by as much as 23% after taxes and duties.

Delays in grid availability have postponed the supply date beyond 2024, according to Adani Green. Meanwhile, the new government under Chief Minister N. Chandrababu Naidu is considering suspending the agreement due to the U.S. indictment of Adani. A decision is expected by year-end.

Should the deal proceed, Andhra Pradesh’s treasury faces hundreds of millions of dollars in annual payments, equivalent to its social security and nutrition program spending for the previous fiscal year.