Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google plans to invest $10B to establish a 1-gigawatt data center cluster in Visakhapatnam, in the Indian state of Andhra Pradesh, The Economic Times reported.
The details of the agreement are expected to be finalized between Google’s top executives and Andhra Pradesh IT and electronics minister Nara Lokesh in New Delhi on Oct. 14, the report added.
Google did not immediately respond to a request for comment from Seeking Alpha.
The Andhra Pradesh State Investment Promotion Board is expected to clear the investment proposal on Wednesday.
The project is set to become Google’s largest-ever direct investment in India’s digital economy, the report noted.
The facility will consist of three data center campuses at Adavivaram and Tarluvada villages in Visakhapatnam district and Rambilli village in Anakapalli district. These campuses are scheduled to become operational by July 2028, the report added.
Currently, Amazon (AMZN), Microsoft (MSFT) and Google together account for about 30% of India’s data center demand, a share expected to grow to 35%, according to property consultancy Anarock Capital, the report added.
U.S. tech giants, including Microsoft, Google and Meta Platforms (META) have been announcing plans to invest billions of dollars to set up data centers amid the AI boom. Last week, Google said it will invest $4B in Arkansas through 2027 for the construction of a new data center powered by Entergy. Last month, the company announced the opening of its data center in Waltham Cross, Hertfordshire, as part of a two-year £5B investment in the U.K.
Last month, Meta’s CEO Mark Zuckerberg, reportedly, told President Donald Trump that the company plans to spend “something like at least $600B” through 2028 on data centers and other infrastructure in the U.S.