Google Mulling Manufacturing AI Servers In India: Ashwini Vaishnaw

IT minister Ashwini Vaishnaw has said that global tech giant Google is “seriously” considering manufacturing AI servers in India.

Speaking at the CII Annual Business Summit 2026, he said, “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.”

For context, AI servers are powerful computing systems built to handle heavy AI workloads, including training LLMs and running real-time AI applications.

While Google designs its own AI hardware, such as Tensor Processing Units (TPUs), it depends on global manufacturing partners like Quanta Computer and Foxconn for assembling and producing its server systems.

Vaishnaw’s remarks came days after the minister met senior Google officials, including the company’s vice president of government affairs and public policy, Wilson White.

Following this, the minister said in a post on X that Google is exploring investments in India across AI infrastructure as well as servers and drones.

Besides, Vaishnaw also spoke about semiconductors and said India already has two semiconductor factories under commercial production, while a third plant is set to begin production in July and a fourth by December. 

He noted that work on 12 semiconductor factories is currently underway, marking a major step towards building a strong domestic chip ecosystem.

He further said the government is aggressively promoting data centres and digital infrastructure. Referring to the Budget announcement of exemption of data centres from taxation till 2047, Vaishnaw said the move has already attracted nearly $200 Bn in investments.

“We are very focused on data centres. Till 2047, we are not putting any tax on data centres. That decision is very important for our country,” the minister said.

This comes at a time when Google has begun construction of its India AI Hub project in Visakhapatnam, in partnership with AdaniConneX and Nxtra by Airtel. The project is part of Google’s planned $15 Bn investment announced last October and will include India’s first gigawatt-scale AI hub with three data centre campuses.

Speaking during the groundbreaking ceremony of the project last month, Vaishnaw said India is emerging as a trusted global hub for electronics manufacturing and urged companies like Google to manufacture servers, GPUs and chips in the country. 

According to MeitY, the project will include a 1 GW hyperscale AI data centre, for which the Andhra Pradesh government has allocated around 600 acres of land.

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