Alphabet Inc’s Google plans to invest $10 billion to establish a massive data centre and artificial intelligence hub in Andhra Pradesh, marking its largest investment in India to date, state officials said.

The 1-gigawatt data centre campus will be located in the port city of Visakhapatnam and will integrate AI infrastructure, large-scale energy sources, and an expanded fibre-optic network, according to a statement from the state government. A formal agreement is expected to be signed on Tuesday.

The investment comes amid intensifying competition among global tech giants, all racing to expand data centre capacity to meet surging demand for AI services.

“In an era where data is the new oil, such initiatives will serve as a strategic advantage,” said Nara Lokesh, Andhra Pradesh’s IT minister.