Google's Major AI Hub in Visakhapatnam Moves Forward with Land Acquisition
The district administration in Visakhapatnam has successfully completed the acquisition of 308 acres of land in Tarluwada village, located near Anandapuram. This land is designated for the proposed Google data centre project, a critical component of a larger artificial intelligence initiative. The acquisition was carried out on behalf of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), which is expected to allocate approximately 200 acres specifically for the data centre development.
Overcoming Initial Hesitations and Opposition
Initially, some assignees expressed reluctance to part with their land, but the process was ultimately finalized. Authorities had suspected that certain opposition elements were attempting to obstruct the proceedings at one stage. However, with the consent of all 51 assignees, including a Divyang farmer named Mr. Ganesh, the acquisition has been officially completed. Anandapuram tehsildar S Srinu Babu confirmed that each assignee will receive Rs 40 lakh per acre as compensation, along with 20 cents of land and other benefits.
Compensation and Community Benefits
Bheemili MLA Ganta Srinivasa Rao, whose constituency includes Tarluwada, highlighted the enhanced compensation package. Instead of the sub-registrar rate of Rs 17 lakh per acre, the compensation was increased to Rs 20 lakh per acre. For 80 cents in an acre, assignees will receive two-and-a-half times the compensation, totaling Rs 40 lakh, plus an additional 20 cents of land. Additionally, each affected family will be provided with a job, a shop in a shopping complex for livelihood support, and three cents of house-site land for 520 farmers under the wasteland development scheme.
Project Scope and Strategic Partners
The Google data centre project will be spread across three locations in Visakhapatnam and Anakapalli districts, with Tarluwada anticipated to become the principal hub. Google has announced plans to invest $15 billion over the next five years to establish an artificial intelligence hub in Visakhapatnam, following a memorandum of understanding with the state government. This investment is expected to position Visakhapatnam as a key technology and innovation destination in India.
Google's Indian subsidiary, Raiden Infotech, has named several project partners for the Vizag data centre, including Adani Infra, AdaniConneX, Adani Power India, Bharti Airtel, Nxtra Data, and Nxtra Vizag (subsidiaries of Bharti Airtel). The three sites identified by APIIC—Tarluwada, Adavivaram, and Rambilli—together measure about 500 acres. Adani Infra is the primary notified partner, and all land parcels will initially be transferred to it. After preliminary works, Raiden has proposed internal transfers: the Rambilli site will go to Nxtra Data or its subsidiaries, while the Tarluwada and Adavivaram-Mudasarlova sites will be transferred to AdaniConneX or its subsidiaries for development.
Community Reactions and Real Estate Impact
During earlier visits by TOI, some residents expressed concerns about potential electricity consumption, water usage, and other environmental issues commonly associated with data centre projects globally. However, the majority were optimistic, believing the project would transform the socio-economic landscape by bringing infrastructure improvements and new livelihood opportunities.
Interestingly, the announcement has triggered a real estate frenzy in the region. Even before the foundation stone is laid, land parcels in and around Tarluwada and Anandapuram have seen renewed interest from buyers. In a recent auction conducted by VMRDA, remaining plots in layouts at Kapuluppada and Palavalasa, located two kilometres from Tarluwada, were sold at a premium of nearly 65 percent over the upset price.
About Google's AI Hub in Visakhapatnam
Google plans to establish a major AI hub in Visakhapatnam to deploy its full AI technology stack in India. This project combines AI infrastructure, a massive data-centre campus, clean-energy systems, and expanded fiber networks in one integrated site. The $15 billion investment over five years (2026-2030) represents Google's largest investment in India to date.
The infrastructure will be similar to what supports Google's core products like Search, YouTube, and Workspace. It will link to Google's global network by creating a new international subsea cable gateway in Visakhapatnam, providing route diversity to complement existing subsea cable landings in Mumbai and Chennai. The hub will also connect with Google's R&D efforts in Bengaluru, Hyderabad, and Pune, leveraging innovations in software and hardware.
