Google's $15 Billion AI Hub in Visakhapatnam: A Boon for India's Real Estate and Infrastructure
Google's massive investment in Visakhapatnam, coupled with the upcoming National Data Centre Policy 2025, is set to revolutionize India's real estate and infrastructure sectors.
GoogleData CentreReal EstateInfrastructureVisakhapatnamReal Estate NewsNov 05, 2025
The technology major's proposed $10–15 billion investment, spread over five years, coincides with the upcoming National Data Centre Policy 2025 — a combination that experts say could trigger new demand across industrial land, warehousing, housing, hospitality, and office segments nationwide.
Industry trackers said the proposed Visakhapatnam facility would rank among India’s largest data centre campuses, featuring hyperscale infrastructure, a subsea cable landing station, renewable power assets, and fiber connectivity. The project, which involves ecosystem partners such as telecom operators and renewable energy developers, marks a deeper integration of technology and infrastructure investment.
Analysts noted that while multiple partners are supporting the initiative, the larger opportunity lies in the policy tailwinds expected from the government's forthcoming framework. The draft National Data Centre Policy 2025, prepared by the Ministry of Electronics and Information Technology (MeitY), proposes a range of incentives — including up to 20 years of tax exemptions, input tax credits on construction, and power and infrastructure support.
It also seeks to streamline single-window clearances and create dedicated zones for data parks near expressways, industrial corridors, and coastal regions. According to property consultants, these measures could make emerging cities like Visakhapatnam, Kochi, and Pune commercially viable for data centre developers who have so far concentrated in Mumbai, Chennai, and Delhi-NCR.
By easing approvals and lowering capital costs, the policy can multiply private and foreign investment over the next few years, said a Delhi-based real estate developer who operates in the data centre space. Experts explained that hyperscale data centres are both capital-and land-intensive, typically requiring 50 to 150 acres of contiguous land with strong grid connectivity and backup power capacity.
These projects, in turn, stimulate demand for industrial corridors, logistics parks, and residential clusters for employees and service providers. Operations and maintenance teams also drive requirements for Grade-A offices, serviced apartments, and co-living spaces. Savills India estimates that over 13 million square feet of new data centre capacity is already in the pipeline across major cities, with total installed capacity expected to touch 3 gigawatts by 2030.
Amit Sarin, managing director of Anant Raj Ltd, said India's data centre industry is on the brink of exponential growth as cloud computing, AI, and 5G adoption deepen. The proposed National Data Centre Policy's plan to link tax exemptions with capacity, energy efficiency, and employment generation will further strengthen the investment case for developers, he told Moneycontrol.
Industry reports by JLL and Avendus project that India’s data centre capacity will rise from 1,030 MW in 2024 to 1.8 GW by 2027, supported by AI-led workloads, data localisation rules, and rising enterprise cloud adoption. Experts believe that policy clarity and large anchor projects such as Google's will be crucial to unlocking billions in fresh investment in the coming decade.
However, analysts also cautioned that execution and coordination between central and state agencies will be key. Land acquisition, power availability, and water access remain major challenges. Recent reports have indicated that certain parcels of land in Visakhapatnam earmarked for data infrastructure are already facing disputes and compensation delays.
Despite these hurdles, industry observers agree that India's data centre ecosystem is poised for a step change. With both private and public investment converging around digital infrastructure, the country could witness the emergence of new technology-driven real estate hubs that redefine its investment geography — from traditional metros to emerging coastal cities like Visakhapatnam.
Frequently Asked Questions
What is Google's proposed investment in Visakhapatnam?
Google plans to invest $10–15 billion over five years to establish a gigawatt-scale AI and data centre hub in Visakhapatnam, Andhra Pradesh.
What is the National Data Centre Policy 2025?
The National Data Centre Policy 2025, prepared by the Ministry of Electronics and Information Technology (MeitY), proposes incentives such as tax exemptions, input tax credits, and power and infrastructure support for data centre developers.
How will the policy impact real estate in emerging cities?
The policy aims to make cities like Visakhapatnam, Kochi, and Pune commercially viable for data centre developers by easing approvals and lowering capital costs.
What are the challenges in establishing data centres in India?
Challenges include land acquisition, power availability, and water access. Recent reports have indicated disputes and compensation delays in Visakhapatnam.
What is the projected growth of India's data centre capacity?
Industry reports project that India’s data centre capacity will rise from 1,030 MW in 2024 to 1.8 GW by 2027, supported by AI-led workloads, data localisation rules, and rising enterprise cloud adoption.
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