Google announces $15B investment in AI hub meant to drive digital transformation

Google announced yesterday that it will invest $15 billion in India over the next five years to establish its first artificial intelligence hub in the country.

Located in the southern city of Visakhapatnam, the hub will be one of Google’s largest globally. It will feature gigawatt-scale data center operations, extensive energy infrastructure and an expanded fiber-optic network, the company said in a statement.

The investment underscores Google’s growing reliance on India as a key technology and talent base in the global race for AI dominance. For India, it brings in high-value infrastructure and foreign investment at a scale that can accelerate its digital transformation ambitions.

Google said its AI hub investment will include construction of a new international subsea gateway that would connect to the company’s more than 2 million miles (3.2 million kilometers) of existing terrestrial and subsea cables.

“The initiative creates substantial economic and societal opportunities for both India and the United States, while pioneering a generational shift in AI capability,” the company’s statement said.

Google CEO Sundar Pichai spoke to Indian Prime Minister Narendra Modi about the company’s ambitious plans.

“Through it (the hub), we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country,” Pichai said on the social media platform X.

Modi said the multi-faceted investment aligns with India’s vision to build a developed country.

“It will be a powerful force in democratizing technology. It will also ensure AI for all, delivering cutting-edge tools to our citizens, boosting our digital economy and securing India’s place as a global technology leader,” he said.

Business conglomerate Adani Group said in a statement it had partnered with Google for developing the hub. RAJESH ROY, NEW DELHI, MDT/AP