Alphabet’s Google (GOOGL) is making a big push into India’s tech space with plans to invest $15 billion to build a new AI and data center hub in the southern city of Visakhapatnam. The project, announced by Google Cloud CEO Thomas Kurian, will roll out over the next five years and mark Google’s largest AI hub outside the U.S.
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The plan follows months of talks with local officials. Andhra Pradesh’s Minister for Human Resources Development, Nara Lokesh, said the deal came after “a year of intense discussions and relentless effort,” calling it “just the beginning” of a broader partnership to boost India’s digital growth.
Google Expands India’s AI and Cloud Capacity
Reportedly, the new hub will be built by Google’s Indian arm, Raiden Infotech, which aims to set up three campuses across Visakhapatnam. The project will add about 1 gigawatt of data capacity to the state’s fast-growing tech network.
Tech giants are racing to expand data centers worldwide to handle soaring AI and cloud computing demand. Earlier this year, Google lifted its 2025 capital spending forecast to $85 billion, up from $75 billion, citing stronger cloud demand. The company also plans to spend $25 billion in U.S. data centers over the next two years.
India Draws Big Tech Attention
India is fast emerging as a key hub for global data and AI expansion. For instance, Amazon Web Services (AWS) plans to invest $8.2 billion to strengthen its cloud and AI infrastructure in the country. Also, Microsoft (MSFT) is deepening its presence with a $3 billion investment to expand Azure’s AI and cloud services.
For Google, the Visakhapatnam hub strengthens its position in one of the world’s fastest-growing cloud markets.
Is GOOGL a Good Stock to Buy?
Analysts remain highly optimistic about Alphabet’s long-term outlook. On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 30 Buys and eight Hold ratings. The average Alphabet price target of $255.78 represents a potential 4.76% upside from current levels.
Year-to-date, Google stock has gained 29.4%.
