Key highlights:
- Google plans to open a $15 billion AI hub in Andhra Pradesh, targeting a 2028 launch.
- The state is developing almost 160 gigawatts of green energy to meet increasing electricity demands.
- Blackstone is expected to invest about 1 trillion rupees ($10.7 billion) in a data centre.
- Local residents and environmental groups worry these projects might put pressure on water and power supplies.
Andhra Pradesh wants to boost its reputation as a major technology and industry hub by attracting big global investors. Google’s data centre and undersea cable project is at the centre of this plan, and Blackstone could add even more digital infrastructure. Chief Minister N. Chandrababu Naidu said these projects will go forward, and the government is getting ready to meet their needs for resources.
But there are doubts about whether the area, especially around Visakhapatnam, has enough electricity and water for such large projects. The state is pushing for more renewable energy and better water systems, but many residents and opposition groups are still worried about whether these resources can keep up with the demand.
Google AI Hub Expected to Begin Operations in 2028
Google’s $15 billion investment is the company’s biggest in India yet. The plan includes a data centre and an undersea cable and should be up and running by 2028. Speaking in Visakhapatnam on Wednesday, Naidu said the project will go ahead and that public interests will be protected.
Google aims to use advanced air-cooling systems to cut down on the water needed to keep its servers cool. Naidu also said Google will have to meet its social responsibilities and that trust between the company and the state will be important for moving forward.
This investment is a big part of the government’s plan to put Andhra Pradesh on the map as a tech center. The state has offered incentives and subsidies to draw companies from technology, semiconductors, electronics, and manufacturing sectors.
Andhra Pradesh Plans Nearly 160 GW of Renewable Energy
Big data centres need a lot of electricity. Naidu said Andhra Pradesh is working on about 160 gigawatts of green energy, using solar power, new transmission lines, and also exploring wind, pumped-storage, and battery projects. For the short term, the state will rely on some thermal power as well. Water is another big concern. Groups like the YSR Congress Party have questioned whether Visakhapatnam can handle the project since the city already deals with water shortages.
Naidu said the government is working to boost supplies by interlinking water projects and relying on the Polavaram dam, which is supposed to be ready by March 2027. These efforts aim to supply water for the new projects. This conversation is happening globally as more data centres open. People everywhere are asking if there’s enough power, water, and land for these facilities.
Blackstone Plans a ₹1 Trillion Data Center Investment
Naidu said Blackstone, the world’s largest alternative asset manager, will soon announce a data center investment of about 1 trillion rupees ($10.7 billion) in Andhra Pradesh. Earlier in June, AirTrunk, a data center operator backed by Blackstone, also said it would invest $30 billion into India by 2030, hoping to benefit from growing demand for AI and cloud services.
Investment isn’t just coming into data centres. South Korea’s Kia Motors Corp. plans to expand in the state, bringing in more vendors and another 200 billion rupees, according to Naidu. The government also has bigger goals, with projects in steel, pharmaceuticals, tourism, and new airports. These new ventures are expected to create jobs and boost the state’s economy.
Naidu Seeks to Recreate Hyderabad’s Technology Growth
Naidu is drawing on his past experience promoting Hyderabad as an IT destination, where global companies like Microsoft and Oracle now have large offices. He remembered the criticism he faced when he first pushed IT development back in 1995 and said he sees similar pushback now. But he believes tech investments bring big economic benefits with time.
The chief minister wants to grow Andhra Pradesh’s economy by 15%, about double the national pace. Besides bringing in major companies, he also plans to make it easier for smaller businesses to start and operate. With the proposed changes, micro, small, and medium-sized businesses could launch simply by submitting information, without needing lots of prior approvals. Inspections would be managed later by independent third parties.
