Alphabet (GOOGL) Stock: Google Plans Server and Drone Production Expansion in India

Key Highlights

• India’s IT minister revealed that Google is considering investments in AI infrastructure along with server and drone manufacturing within the country.
• Google committed $15 billion over five years in October 2025 for a major AI data center development in Visakhapatnam, Andhra Pradesh.
• The company officially commenced construction on its India AI Hub in Visakhapatnam last month, collaborating with AdaniConneX and Nxtra by Airtel.
• The initiative features India’s inaugural gigawatt-scale AI hub, encompassing three data center facilities across 600 acres of designated land.
• Indian officials are pushing Google to establish local production facilities for servers, GPUs, and semiconductor chips as the nation expands its electronics sector.

Google is broadening its presence in India well beyond traditional data infrastructure. Ashwini Vaishnaw, India’s Union Minister for Electronics and Information Technology, disclosed that the tech giant is evaluating potential investments in AI infrastructure development and the domestic production of servers and drones.

This development follows Google’s October 2025 announcement of a $15 billion, five-year financial commitment to construct a data center and AI hub in Visakhapatnam, Andhra Pradesh. The company characterized this as its most substantial investment in India to date.

On April 28, Google officially launched construction on this ambitious project, working alongside AdaniConneX and Nxtra by Airtel. The tech giant framed the initiative as a component of its “largest investment in India’s digital future to date.”

Alphabet Inc., GOOGL

GOOGL shares were hovering around $165 during publication, showing approximately 3% growth over the preceding week.

Details of the Visakhapatnam Development

The initiative centers on India’s first-ever gigawatt-scale AI hub — comprising three data center facilities with a collective 1 GW hyperscale capacity. Andhra Pradesh authorities have allocated approximately 600 acres spanning the Turluvada, Rambilli, and Adavivaram regions for this development.

During the groundbreaking event, Vaishnaw envisioned Visakhapatnam’s transformation into an “AI Patnam” — essentially an AI City — powered by international investment and advanced digital infrastructure.

India’s Campaign for Domestic Production

The minister’s recent statements extend beyond data center infrastructure. Vaishnaw directly urged Google to establish manufacturing operations for servers, GPUs, and semiconductor chips inside India — an initiative that complements the nation’s wider electronics manufacturing ambitions.

The drone manufacturing component represents a newer dimension and lacks public elaboration. Neither specific timelines nor investment amounts have been disclosed for this potential venture.

Google has not verified any particulars regarding the expanded manufacturing proposals beyond the minister’s public statements.

The Visakhapatnam groundbreaking ceremony occurred on April 28, 2026, with the $15 billion data center development currently in its preliminary construction stages.

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