Artificial Intelligence

Google's mega Vizag investment comes with a regulatory wishlist

Pratap Vikram Singh

July 02, 2025 | 9 Min Read

The tech giant's $4 billion AI and cloud data centre investment in the southern Indian port city hinges on crucial changes across telecom, taxation, and security laws. Will the changes be made?

Key Takeaways

Google has committed a $4B for a cloud, AI data centre hub and undersea cable connectivity in Vizag in Andhra Pradesh
With Chief Minister Chandrababu Naidu on its side, Google is driving a hard bargain with the centre, seeking policy tweaks
The CapTable has learnt Google has submitted a proposal to the PMO, seeking telecom, taxation, security and power related waivers
Security clearances won’t be a cakewalk. A call on some of the policy changes will be taken at highest levels

It is not uncommon for the governments to court marquee investors, either entirely or partly on the latter’s terms. The central government, the government of Andhra Pradesh, and Google are currently in a passionate courtship, with the tech giant’s $4 billion AI and cloud data centre investment—its biggest infrastructure-related spend in India till date—in Visakhapatnam at its heart.

The state has promised nearly 300 acres of land for Google’s AI and cloud hub, which, according to a former company executive involved in regional expansion, will be the largest in Asia after Taiwan and Singapore—two major data centre hubs serving the entire continent. Andhra Pradesh Chief Minister Chandrababu Naidu, credited with the vision to develop Vizag as a tech and innovation hub, has already publicly stated how Prime Minister Narendra Modi’s assurances regarding taxation stability was key in getting Google to invest.

Google, however, isn’t done with its wishlist.

The CapTable has learnt the company has submitted a proposal to the central government—specifically to the Prime Minister’s Office and the Ministry of Finance—seeking favourable regulatory terms in support of the Vizag investment in recent weeks.

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