Google plans over $10b investment in 1 GW data center in India

Google plans to invest over US$10 billion to build a 1-gigawatt data center in Visakhapatnam, India, according to Nara Lokesh, Andhra Pradesh’s technology minister.

The facility is set to be completed within two years and is part of the state’s aim to reach 6 gigawatts of data center capacity by 2029.

India has become a major destination for global data center investments, with Amazon committing US$12.7 billion to cloud infrastructure in the country by 2030, and OpenAI also seeking to launch a 1-gigawatt data center there.

Consulting firm CBRE Group projects total data center investments in India could surpass US$100 billion by 2027.

Despite government support through incentives like subsidized land and power, the sector faces challenges including water scarcity and unstable electricity supply.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Power and regulatory factors in Andhra Pradesh could complicate Google’s timeline

Cheap power lures data centers to Andhra Pradesh, yet the state’s DISCOMs face renewable gaps from FY28 despite planned solar and hybrid additions, which clouds procurement for a 1GW site due within two years 1.
APERC set a revised ₹2.49/kWh tariff for the APSPDCL–NALCO wind PPA, moved REC benefits to the DISCOM amid rising RPO targets, and raised the stakes for reliable green supply to hyperscale facilities (very large data centers) 1.
The state tried to reopen older renewable PPAs in 2019 over high prices, which triggered litigation with regulatory proceedings following 2. Tariff certainty plus contract enforcement remain open issues for Google’s sourcing plan.

Independent power producers can win deals with firm renewable PPAs plus storage

New wind–solar hybrid PPAs cleared in Andhra Pradesh came in at ₹4.6/kWh, set CUF above 60% with peak-hour duties, and used Energy Storage System (ESS) support as the template for round-the-clock supply 3.
APSPDCL asked for two-hour peak delivery at 90% availability in the morning and evening, APERC adjusted the peak windows in its order, which drives grid-scale storage paired with renewables 3.
Google’s 1GW site and the state’s 6GW data center target by 2029 set up steady demand, so developers offering firm (guaranteed-availability) capacity through open access (a mechanism allowing large consumers to buy power directly from generators over the grid) PPAs can lock long-term offtake (purchase) at sharp prices.