Tax clarity secures Google’s $10 billion data centre, transforming AP economy

Google’s $10 billion data centre project in Visakhapatnam, Andhra Pradesh, marks India’s largest digital infrastructure investment, enabled by proactive collaboration between the state and central governments to ensure full policy and taxation clarity for hyperscale data centre operations. This clarity includes a firm commitment against retrospective taxation and the establishment of streamlined approvals, setting a precedent for global tech investments in India. The agreement, signed with Andhra Pradesh’s Information Technology Department, features a 1-gigawatt hyperscale data centre campus, anchoring the creation of “AI City Vizag”—India’s first integrated AI and cloud innovation hub, powered by dedicated and renewable energy infrastructure, reliable utilities, and an expanded fibre-optic network directly linked to Google’s global backbone.​

Construction will span three campus locations around Visakhapatnam and Anakapalli districts, with high-capacity submarine cables, landing stations, and metro fibre lines supporting resilient connectivity. The data centre is expected to become operational by mid-2028, generating an annual contribution of about ₹10,518 crore to Andhra Pradesh’s gross state domestic product during the first five years, while directly and indirectly supporting nearly 188,000 jobs across construction, operations, IT, and engineering functions. Google Cloud’s presence will foster rapid digital enablement, productivity spillovers, and industry transformation estimated at ₹9,553 crore each year through ancillary effects on technology, digital services, and new platform adoption.​

The project is designed to accelerate economic diversification and position Vizag as a strategic digital gateway for South and East Asia, drawing large-scale investments in advanced computing, telecommunications, real estate, and the supply chain ecosystem. It reflects Andhra Pradesh’s ambition to become India’s leading AI, cloud, and digital innovation hub, supported by long-term investor confidence in the state’s governance and execution capabilities. With complementary investments by other major technology and energy players, the region is on track to transform its infrastructure and economy, showcasing the vital role of responsible policy, reliable execution, and future-ready development strategies in attracting transformative international projects.​

CT Bureau