Google Weighing Making AI Servers in India, Vaishnaw Says
The IT minister said India is drawing large data center investments as the government pushes domestic AI infrastructure and semiconductor manufacturing.
Topics
News
- Adani Says India Must Own AI Stack to Secure Future Power
- SoftBank Plans Battery Business to Power AI Data Centers
- Nasscom Backs Hybrid Work, NITES Seeks WFH Advisory for IT Sector
- OpenAI Launches Enterprise AI Deployment Unit with $4 Billion Backing
- Google Weighing Making AI Servers in India, Vaishnaw Says
- Supreme Court Launches AI Chatbot, Unified Court Data Initiative
Union Information Technology Minister Ashwini Vaishnaw said Google is seriously considering manufacturing artificial intelligence servers in India, as the government seeks to build domestic AI, data center and semiconductor capacity.
Speaking at the CII Annual Business Summit 2026 this week, Vaishnaw said he had asked Google and other global technology companies to manufacture AI servers locally.
“I have requested Google and other major players to manufacture AI servers in India. AI servers manufactured here match global quality. HP has started manufacturing AI servers here,” Vaishnaw said, according to The Press Trust of India.
AI servers are high-performance systems used to train large language models and run real-time AI applications. Google designs its own AI hardware, including Tensor Processing Units, but uses manufacturing partners such as Quanta Computer and Foxconn for server assembly and production.
Vaishnaw had met senior Google officials last week, including Wilson White, the company’s Vice-President for Government Affairs and Public Policy. The talks reportedly covered possible investments in AI infrastructure, servers and drone manufacturing in India.
The minister’s comments come as Google builds out its India AI Hub in Visakhapatnam.
Google announced in October 2025 that it would invest about $15 billion over five years, from 2026 to 2030, to establish its first AI hub in India. The project includes gigawatt-scale data center capacity, new energy infrastructure and an expanded fiber-optic network.
Google said the Visakhapatnam hub will include a purpose-built data center campus capable of gigawatt-scale compute, built to the standards used for global services such as Search, YouTube and Workspace.
The company is working with AdaniConnex and Airtel on the project.
A Google Cloud release said the project includes India’s first gigawatt-scale AI hub, comprising three data center campuses. AdaniConnex and Nxtra by Airtel will lead construction of the data center buildings and connecting infrastructure.
Vaishnaw said nearly $200 billion in investment is coming into India’s data center economy. He also said three large subsea cable networks are being built to connect India with Australia, the Middle East, Europe, South Africa and the US, adding to the country’s digital infrastructure base.
The government has sought to attract cloud and data center investments through tax incentives.
In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman proposed a tax holiday till 2047 for foreign companies that provide cloud services to global customers using India-based data centers, while requiring Indian customers to be served through a local reseller entity.
Vaishnaw also pointed to India’s semiconductor manufacturing push. He said two semiconductor plants are already in commercial production, a third is expected to begin commercial production in July and a fourth by November or December. Work on 12 semiconductor factories is in progress, he said.
The Cabinet last week approved two more semiconductor projects worth ₹3,936 crore, taking the total number of approved projects under the India Semiconductor Mission to 12.
Vaishnaw said demand for AI-related jobs is growing by 15% to 20% annually and urged companies to work with Nasscom to prepare talent for the next phase of technology adoption.
