India, the new hub of AI?

Note: The views expressed in this text are solely those of the author and do not necessarily reflect the position of this website.

Indian Information and Broadcasting Minister Ashwini Vaishnaw, Finance Minister Nirmala Sitharaman, Chief Minister of Andhra Pradesh N. Chandrababu Naidu, Andhra Pradesh Minister Nara Lokesh, Bikash Koley (Google Vice President Global Infrastructure) and Thomas Kurian (CEO of Google Cloud) attended the “Bharat AI Shakti” organized by Google in New Delhi. (IMAGO / ANI News)

Alphabet’s (Google) US$15 billion investment in an artificial intelligence and data hub in Visakhapatnam, Andhra Pradesh, marks a turning point in India’s technological trajectory and its emerging role on the global stage. As Google’s largest AI hub outside the United States, this project underscores India’s strategic importance for global technology expansion, especially in AI and cloud computing.

The project is multifaceted, combining:

• Gigawatt-Scale Cloud and AI Infrastructure: The installation of large-capacity data centers is fundamental for massive data processing and AI model training, both essential for the digital future.

• Enhanced connectivity: The construction of a new international submarine cable landing point in Visakhapatnam diversifies and strengthens India’s digital backbone, ensuring low latency and greater resilience for digital services.

• Sustainability: The inclusion of renewable energy systems and the expansion of the fiber-optic network demonstrate a commitment to responsible digital growth.

India’s Digital Transformation

Google’s investment is not an isolated event, but rather a reflection and a catalyst for the rapid growth of India’s data center and technology industry, driven by competitive data costs and an expanding internet user base (around 900 million Indians already use the internet regularly). The presence of global giants such as Microsoft and AWS, also investing heavily in the country, reinforces India’s position as a hub for cloud and AI expansion.

The project aligns with the government’s “Viksit Bharat 2047” (“Developed India 2047”) vision, which aims to transform the country into a prosperous and technologically advanced economy by the centenary of its independence. Cutting-edge AI and cloud infrastructure are crucial for the digitalization of key sectors such as healthcare, agriculture, and education, creating high-value jobs and driving digital transformation across all levels of the economy.

The future of India

India, already a global powerhouse in IT services and the world’s most populous country, is solidifying its position as an emerging technological leader, especially in artificial intelligence and public digital infrastructures such as India Stack (which includes the Aadhaar digital identity system and the UPI payment platform).

India’s future role will be characterized by:

1. Leadership in AI Innovation: Google’s hub, being the largest of its kind outside the U.S., positions India not only as a consumer market but as a center for AI development and application on a global scale.

   
   

2. Export of Digital Solutions: The success of India Stack (which facilitated over 19 billion transactions per month, free of charge, in July 2025) and the focus on digital sovereignty show that the country is exporting its public digital infrastructure model to other nations—especially in the Global South—enhancing its technological geopolitical influence.

   
   

3. Skilled Human Capital: India has a vast and growing young population and a strong engineering base, which is the driving force behind its technological rise. The current focus is on workforce reskilling for an AI-driven economy.

   
   

4. Global Strategic Partner: Google’s investment underscores India’s importance in U.S.-India technological cooperation, with both nations prioritizing the safe and responsible development of AI.

In summary, India is climbing the technological ladder, shifting from an IT outsourcing center to a hub of innovation, digital infrastructure, and large-scale AI. This multibillion-dollar investment by Google is a testament to global confidence in India’s digital future and its potential to shape the next era of world technology.

References

DEY, Abhishek. Google to build a $15bn AI data hub in India. BBC News, 2025. Disponível em: <https://www.bbc.com/news/articles/cx27yze8p0jo>.

KURIAN, Thomas. Our First AI Hub in India, Powered by a $15 Billion Investment. Google. Disponível em: <https://blog.google/intl/en-in/company-news/our-first-ai-hub-in-india-powered-by-a-15-billion-investment/>.