Google Defies India’s ‘Swadeshi’ Push with $15B AI Hub Investment—But Will It Backfire?
In a bold move that’s sure to spark debate, Google is doubling down on India with a staggering $15 billion investment in a 1-gigawatt data center and AI hub, even as the Indian government champions self-reliance and local tech alternatives. But here’s where it gets controversial: Is this a strategic win for India’s tech ambitions, or a risky embrace of a foreign giant amid growing calls for digital sovereignty?
On Tuesday, Google announced (https://www.googlecloudpresscorner.com/2025-10-14-Google-Announces-First-AI-Hub-in-India,-Bringing-Companys-Full-AI-Stack-and-Consumer-Services-to-Country) plans to establish the facility in Visakhapatnam, Andhra Pradesh, marking its largest-ever investment in the country—and its biggest outside the U.S. This comes just five years after Google’s initial $10 billion pledge (https://techcrunch.com/2020/07/13/google-to-invest-10-billion-in-india/) in 2020. The project, spanning 2025 to 2030, will scale up to “multiple gigawatts” over time, according to Google Cloud CEO Thomas Kurian.
But here’s the part most people miss: This announcement lands amid a tense political climate. Since 2025, Indian leaders, including Prime Minister Narendra Modi, have aggressively promoted swadeshi (Hindi for “made in India”) products, urging citizens to reduce dependence on U.S. tech giants. Lawmakers have even endorsed homegrown alternatives like Zoho Corporation’s Google Cloud and Gmail competitors, WhatsApp rival Arattai, and MapMyIndia—a direct challenge to Google Maps. While these efforts have had limited impact so far, they signal a growing political undercurrent that could threaten Google’s long-term presence in India.
Google’s new AI hub will be part of a global network spanning 12 countries, offering a “full stack of solutions,” including custom Tensor Processing Units (TPUs) for local AI processing. The company will also provide access to its AI models, such as Gemini, and platforms for building applications. Additionally, the hub will support consumer services like Google Search, YouTube, Gmail, and Google Ads. Kurian envisions it as a regional powerhouse, serving not just India but also Asia and beyond.
And this is where it gets even more intriguing: Google isn’t just building a data center. It’s partnering with Bharti Airtel to establish a subsea cable landing station in Visakhapatnam, turning the city into a global connectivity hub. “We see it providing a digital backbone for India,” Kurian said. The company has also teamed up with AdaniConneX to develop the data center infrastructure.
But is this a win-win, or a risky gamble? While the investment aligns with India’s AI mission goals, as IT Minister Ashwini Vaishnaw noted, it also raises questions. Vaishnaw even suggested the Andaman Islands as the next global internet data transfer hub, citing Singapore’s congestion. But will Google’s dominance undermine India’s swadeshi vision? And what happens if political tensions escalate further?
Google’s choice of Visakhapatnam isn’t random. Andhra Pradesh, under Chief Minister N. Chandrababu Naidu, has already attracted tech giants like Oracle and Microsoft to Hyderabad. Naidu, a key Modi ally, has been instrumental in shaping national tech policies. Yet, as India pushes for self-reliance, Google’s massive investment could become a lightning rod for criticism.
What do you think? Is Google’s $15B bet a strategic masterstroke or a risky move in the face of India’s swadeshi movement? Will homegrown alternatives like Zoho and MapMyIndia gain traction, or will Google’s dominance prevail? Let us know in the comments—this debate is far from over.
