From Andhra to Chhattisgarh, how states are competing for a slice of AI fortune
As Google picks Andhra Pradesh for a $15 billion AI hub, a look at how other states are stacked up
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Last Updated: Oct 14, 2025, 17:21 IST1 min
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Google on Tuesday announced it will invest $15 billion over the next five years to set up an artificial intelligence (AI) data centre in Andhra Pradesh, its largest investment in the country.
Google Cloud CEO Thomas Kurian said the campus is the “largest AI hub that we are going to be investing in anywhere in the world outside of the United States”.
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“It is part of a global network of AI centres in 12 countries,” he said at an event in New Delhi.
The campus in Visakhapatnam, which will have a capacity of 1 Gigawatt initially, will be scaled to "multiple gigawatts", Kurian added.
The investment amount is higher than the $10 billion state officials had estimated earlier.
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Lauding the investment, Finance Minister Nirmala Sitharaman said Andhra Pradesh is the right place to host India’s first AI hub. Speaking at AI Bharat Shakti, she praised Chief Minister N Chandrababu Naidu for his “vision and experience”.
Here’s how other Indian states have positioned themselves in this new scramble for AI capital:
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Chhattisgarh: Signed a deal with RackBank in May to set up India’s first AI DataCenter Park, with a Rs1,000 crore investment from the company.
Assam: Inked an agreement with Tata Group last year to lease over 170 acres for Rs27,000 crore. The greenfield facility will assemble and test semiconductor chips for applications across automotive, mobile devices, AI and other segments.
Tamil Nadu: The state will set up Tamil Nadu AI labs in partnership with Google. A Memorandum of Understanding (MoU) was signed last year which focuses on scalable AI solutions in areas like startup enablement, skilling and industrial ecosystem advancement, mainly supporting MSMEs.
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Karnataka: Has collaborated with the World Economic Forum to set up a global AI hub.
Telangana: Announced plans last year to develop AI City Hyderabad, a dedicated hub for AI research, development and innovation.
Gujarat: Inked an MoU with IBM last year to set up an AI Cluster in GIFT City
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First Published: Oct 14, 2025, 17:21
Subscribe NowHimani is an Associate Editor at Forbes India where she writes about startups shaking things up, legacy firms seeking fresh grounds, and sectors in the middle of big transformations. Always curious ab
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