Google’s $10 Billion Vizag Data Centre: Digital Leap or Looming Disaster?
4 min read
Visakhapatnam, Andhra Pradesh:
India is poised to welcome the largest Google data centre project outside the US, with the tech giant announcing a staggering $10 billion (₹88,730 crore) investment to build a 1-gigawatt (GW) hyperscale AI hub in Visakhapatnam. The project, hailed as a “landmark investment” for India’s digital future, is expected to redefine the region’s technology landscape-but not without igniting fierce debate over its social, economic, and environmental costs.
Background: Vizag’s Bid to Become India’s AI Capital
Over the past decade, Andhra Pradesh has aggressively marketed Visakhapatnam (Vizag) as a future technology powerhouse. The state government, now led by Chief Minister N. Chandrababu Naidu and IT Minister Nara Lokesh, has long courted global technology giants to anchor its ambitious “AI City Vizag” initiative. Google’s entry-backed by partnerships with AdaniConneX and Airtel_has brought this vision closer to reality.The centrepiece: a 480-acre campus spanning Tarluvada, Adivivaram, and Rambilli, supported by a high-capacity subsea cable landing station and plans to integrate renewable energy at scale. The state promises streamlined clearances, reliable utilities, and an “Emerging Technologies Cluster” to attract more AI and cloud players.
The Project Break Down: Opportunities and Promises
- Scale: The 1 GW data centre will be one of Google’s largest globally, with three interlinked campuses and direct international connectivity through new subsea cables.
- Economic Impact: State projections estimate an average annual GSDP boost of ₹10,518 crore during 2028–2032, alongside nearly 1.9 lakh direct and indirect jobs per year. Google Cloud’s presence is expected to deliver an additional ₹47,720 crore in productivity-led impact over five years.
- Ancillary Growth: The project is set to catalyze upgrades in power, fibre connectivity, real estate, and telecommunications. State officials claim it will cement Vizag’s status as a digital hub for AI, cloud, IoT, and e-governance platforms.
- Government Incentives: Google has been offered a 25% discount on land, substantial water and electricity subsidies, and a 100% State GST reimbursement during construction (capped at ₹2,245 crore). Electricity and water discounts will continue for up to 15 and 10 years, respectively
The Backlash: Environmental and Financial Alarm Bells
Water and Power Crisis Fears
The Human Rights Forum (HRF) and local activists have slammed the project as a “looming environmental and economic disaster.” Vizag, a city already facing groundwater depletion, erratic rainfall, and acute water stress, could see these crises worsen as the data centre is expected to consume billions of litres of water annually for cooling-a demand that might divert resources away from local communities. “Establishing a high-energy, heat-intensive complex of this magnitude in such an ecologically sensitive region is reckless,” HRF’s Y. Rajesh told India Prime Times. “It’s a grave injustice to divert precious water from residents for corporate use, especially when the city is prone to cyclones and climate variability.”
Energy Demand and ‘Green’ Claims Under Fire
Despite Google’s assertion that the centre will operate on 100% renewable energy, experts and activists remain sceptical. The state grid’s current limitations mean that uninterrupted renewable power is unlikely, with fossil fuel backup inevitable during peak demand-potentially undermining the project’s green credentials and increasing carbon emissions.
Employment Misconceptions
HRF points to global examples where hyperscale data centres, like Google’s Ashburn and Leesburg facilities in the US, directly employ only a few hundred people despite billions in investment. Meta’s $10 billion AI centre in Louisiana is projected to create just 500 permanent jobs-casting doubt on the employment boom promised for Vizag.
Toxic Waste and Local Impact
Similar projects worldwide have led to concerns over toxic waste, chemical run-off, and minimal local benefits. The HRF warns that the massive water use, combined with chemical cooling agents, could risk groundwater contamination and further strain already depleted water tables.
The Political and Fiscal Battle: Are the Subsidies Sustainable?
The decision to extend massive incentives to Google has sparked a political spat, especially with neighbouring Karnataka. IT Minister Priyank Kharge questioned the fiscal prudence of Andhra Pradesh’s subsidies, highlighting the state’s record-high revenue deficit and rising liabilities. “Can any state afford to give ₹22,000 crore in subsidies for a single corporate project?” Kharge asked, citing auditors who note AP’s debt is nearing ₹10 lakh crore.
Comparisons reveal that Andhra Pradesh’s incentives are significantly more generous than those in Karnataka, Maharashtra, or Tamil Nadu, where land subsidies, tax waivers, and tariff discounts are more limited in scope and duration
Google’s Response and the Road Ahead
Google, for its part, maintains that the project will deliver “industry-leading AI infrastructure at scale,” drive inclusive growth, and position India as a global digital leader. The company has pledged to work with local partners on clean energy, new transmission lines, and skills development for Indian IT professionals. “The data centre will establish Visakhapatnam as an AI and connectivity hub that serves not just India, but the world,” said Google Cloud CEO Thomas Kurian at the announcement
The Big Picture: Opportunity vs. Responsibility
As construction gears up for early 2026, the stakes for Andhra Pradesh are high. Can Vizag balance its aspiration to become India’s AI capital with the need to safeguard water, energy, and the environment? Will the promised economic windfall outweigh the substantial public cost and ecological risk? The Google data centre project is both a symbol of India’s digital ambition and a test of its commitment to responsible, sustainable growth. As the debate rages on, India-and the world-will be watching.
