Google Bets Big on India for AI, Servers and Drone Manufacturing

Global technology major Google is exploring fresh investment opportunities in India focused on artificial intelligence (AI) infrastructure and the local manufacturing of servers and drones, Union Minister Ashwini Vaishnaw said on Friday, May 8.

Sharing details of his meeting with Google executives on social media platform X, Vaishnaw said, “Google is exploring investments in India across AI infrastructure and the manufacturing of servers and drones.”

The development comes at a time when global technology firms are significantly ramping up capital expenditure in artificial intelligence, as demand for computing power, cloud infrastructure, and machine learning capabilities continues to surge worldwide.

Google CEO Sundar Pichai has previously announced an additional $185 billion in total capital expenditure this year, signalling a strong push towards AI infrastructure expansion despite investor concerns over rising costs. Speaking at the Google Cloud Next 2026 summit, he also noted that more than 50% of the company’s machine learning compute resources will be directed toward its cloud business.

Andhra Pradesh AI Hub

It is important to note that Google has already announced a $15-billion investment plan in Andhra Pradesh’s Visakhapatnam, where it is building what it describes as a “gigawatt-scale AI ecosystem,” among the largest digital infrastructure projects announced in India so far.

The project includes a 1 GW hyperscale AI data centre, with the Andhra Pradesh government allocating around 600 acres of land across Turluvada, Rambilli and Adavivaram for development.

At the April 28 groundbreaking ceremony, Vaishnaw had said, “India is poised to emerge as a major trusted value chain and supply chain partner to the world in electronic manufacturing, driven by strong policy support and visionary leadership.”

India Sees Big Data Centre Push

Not only Google, but Indian companies are also stepping up in the same space. Reliance Industries is set to invest ₹1.6 lakh crore (over $17 billion) in a 1.5 GW data centre cluster in Visakhapatnam, according to a report by The Economic Times.

The project, which will also include a captive solar battery storage system, could become one of the largest data centre facilities in India. The Andhra Pradesh Investment Promotion Committee approved the proposal at a meeting held on April 25, the report added.