The mega investment could transform Andhra Pradesh into a major AI centre
American technology conglomerate Google’s decision to establish a major artificial intelligence hub in Visakhapatnam marks a milestone in India’s technology landscape. It represents a moment of real opportunity for the people of Andhra Pradesh, who have long lacked a major growth driver like Hyderabad, Bengaluru, or Chennai.
As part of the proposal, Google intends to invest $15 billion to set up gigawatt-scale computing infrastructure, new subsea cable links, and a data centre campus to anchor its global artificial intelligence services.
This investment is expected to create around 36,000 jobs — both direct and indirect — for local residents in Visakhapatnam and accelerate skill development across the region. It will also help India take the lead in the crucial field of artificial intelligence, which is driving the new wave of industrialisation across the world.
A greater flow of investments in emerging technologies such as artificial intelligence will help build a larger talent pool and enable the country to emerge as a major power in next-generation technologies.
On the flip side, large-scale AI computing is extremely power-hungry. A gigawatt — equivalent to 1,000 megawatts — of power demand is not a minor load, and sustained AI workloads will put significant upward pressure on electricity demand in a country that still experiences power outages.
India cannot afford to miss this opportunity merely because of power constraints. The government must focus on accelerating the nation’s transition to green energy. It should also encourage AI companies to invest simultaneously in renewable power generation, particularly solar energy. In addition, India must consider expanding its nuclear power capacity to meet long-term energy needs.
Last but not least, Google’s investment in Visakhapatnam allows Andhra Pradesh chief minister N. Chandrababu Naidu to relive his “Microsoft moment” — a reference to the historic investment that catapulted Hyderabad to global fame in 1998 when he headed the erstwhile united Andhra Pradesh government. The move may also spur healthy competition among states to emerge as India’s leading AI hubs.
