The race for AI infrastructure is no longer just happening in the U.S. or Europe. Asia has become a key player on the global cloud map, with Google strengthening its presence through new data centers and cloud regions in markets where three decisive factors converge: digital growth, regulatory pressure, and the need for capacity to handle AI workloads. The most visible indication is in India, where Andhra Pradesh is already listed on Google’s official website as a “development” site within its global data center network.
The Indian project has gained prominence in recent weeks because The Economic Times reports that Google plans to begin construction at a large data center campus near Visakhapatnam by the end of April. The outlet estimates an investment of around $15 billion, with a projected capacity of 1 GW across three campuses, targeting an opening date of April 28. However, Google has not publicly disclosed the final cost or total power capacity on its official site, so these figures should be considered preliminary, based on Indian media reports rather than confirmed technical specifications from the company.
Asia is no longer a peripheral market for Google
The clearest sign of this scale shift is visible in Google’s own map. Its network now includes 29 active data center locations across 11 countries. Besides operational facilities in Singapore, Japan, and Taiwan, three major projects are underway: Andhra Pradesh, Chonburi, and Selangor. That means India, Thailand, and Malaysia are now part of the next wave of physical expansion for the company in the region.
In Malaysia, Google announced in May 2024 an investment of $2 billion to establish its first data center and cloud region in the country, explicitly aiming to meet local demand for cloud and AI services. Months later, in September 2024, the company revealed a plan to invest an additional $1 billion to build cloud infrastructure and data centers in Thailand. These are not tactical moves or minor openings; they reflect a coherent regional strategy to bring capacity closer to markets where digital service usage and enterprise cloud workloads continue to grow.
Google isn’t alone. AWS confirmed in 2024 that its new Asia Pacific region (Bangkok) would launch in early 2025, with over $5 billion planned for Thailand through 2037. Microsoft, for its part, announced new data center regions in Malaysia and Indonesia in 2025, with additional openings planned for India and Taiwan in 2026. The takeaway is clear: Asia has shifted from being a complementary part of global infrastructure to becoming one of its main expansion fronts.
Demand is shifting toward where users and data are located
A fundamental reason for this shift is the evolution of the Asian market itself. The region combines demographic scale, digital adoption, and a business base still migrating many workloads from local systems to cloud platforms. In that context, building closer to users is no longer solely a commercial strategy but a technical necessity. Reduced distance means lower latency, better real-time application performance, and more room to operate sensitive services—from analytics to AI-powered assistants.
For Google, it’s not just about serving third-party cloud applications. Its data centers also support proprietary services such as Search, Maps, and Workspace. When the company announced its investment in Malaysia, it clarified that this infrastructure would serve both its global products and expand AI and cloud capabilities within the country. This dual purpose explains why physical deployment is gaining weight: Google needs capacity for enterprise customers, but also to power its own digital services layer in increasingly data-intensive regions.
India fits particularly well within this logic. Google Cloud already offers data residency controls for India and has tools tailored for environments requiring workloads to stay within the country. Additionally, India’s regulatory framework has evolved, with the Digital Personal Data Protection Act of 2023 and subsequent rules reinforcing the focus on data processing, control, and transfer. While not an outright ban on international transfers, these regulations encourage providers to bolster local infrastructure and data residency options for businesses and government agencies.
The same pattern is emerging in other Southeast Asian markets. Indonesia passed its General Data Protection Law in 2022, with specific requirements for cross-border data transfers, while Vietnam tightened local data localization rules through Decree 53, especially in cybersecurity-related cases. Although the norms are not identical, they point in a common direction: designing cloud infrastructure in Asia increasingly depends on sovereignty, compliance, and local control.
AI fundamentally changes the type of data centers needed
The second major reason for Asia’s shift relates to AI. Data centers designed for traditional cloud workloads are not quite the same as those built for next-generation inference, training, intensive storage, and high-speed networks. The International Energy Agency recently warned that data center electricity consumption could double by 2030, with AI-focused centers potentially tripling their energy use.
This necessitates locations with ample land, connectivity, and, most importantly, energy at large scale. Asia offers several attractive combinations: still competitive costs compared to some Western markets, governments eager to attract digital investment, and regional demand that justifies larger campuses. For example, in Andhra Pradesh, The Economic Times reports over 600 acres reserved for development and a planned capacity of 1 GW, while Reuters previously highlighted a 1 GW project in Visakhapatnam as Google’s largest Asian hub outside the U.S. Although figures have varied across reports, the direction is clear: Google aims to establish one of its strategic assets for the next phase of AI in India.
The energy scale also explains why these projects are planned as hubs rather than single buildings. A campus of this size enables capacity modulation, workload distribution, phased expansion aligned with power availability, and interconnection with regional cables, networks, and services. In Visakhapatnam, Indian media have linked the project to ambitions to transform the area into a new digital gateway for India, with better international access toward Southeast Asia and Oceania.
It’s not just growth—it’s a reshuffling of the global cloud landscape
What’s happening in Asia doesn’t mean the U.S. or Europe will lose significance. Both regions will remain key hubs for cloud and AI infrastructure. But it does indicate that the traditional model—focused on a few large nodes serving broad markets—is giving way to a more distributed network. Providers need more local presences to meet regulatory requirements, reduce latency, bring inference closer to users, and respond to clients that no longer accept always depending on a remote region.
Within this context, Google is expanding capacity where it sees a convergence of connected populations, transitioning businesses, supportive public policies, and the growing need for AI-ready infrastructure. Andhra Pradesh is the most visible case today, but the pattern is broader. Thailand and Malaysia are already on the roadmap, and if the market continues its current pace, Asia won’t just be a global cloud extension—it will be a key region shaping the next stage of cloud development.
Frequently Asked Questions
Why is Google investing more in data centers in Asia?
Because the region combines rapid digital growth, increasing cloud and AI demand, tighter data residency requirements, and opportunities to deploy infrastructure closer to users and businesses. Google already has new projects underway in India, Thailand, and Malaysia.
Is the Google project in Andhra Pradesh confirmed?
Yes, Andhra Pradesh appears as a “site in development” on Google’s official website. However, the company has not yet disclosed official figures regarding the exact investment amount or total capacity. These estimates are based on reports from sources like The Economic Times.
What role does regulation play in this expansion?
It plays a significant role. India, Indonesia, and Vietnam have strengthened data protection and storage rules, which push major providers to increase local capacity and offer data residency solutions tailored to each market’s requirements.
Is AI changing the design of data centers in Asia?
Yes. AI workloads demand more power, cooling, and hardware density. The IEA forecasts that electricity consumption of data centers will double before 2030, with an even greater increase for AI-focused facilities.
via: cloudcomputing-news