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The parent firm of Google Alphabet will invest $15bn to build an artificial intelligence data center in southern India's Andhra Pradesh state.

The facility, which will be set up in the coastal city of the city of Visakhapatnam, will become a part of the worldwide network of Google of AI centers located in a dozen nations.

"It stands as the greatest AI hub that we are committing funds to anywhere in the world, outside of the United States of America," the CEO of Google Cloud said at an conference in Delhi, the national capital on Tuesday, noting that the funding will be spread over the next five years.

This declaration comes at a time American President Donald Trump has been encouraging US firms to prioritise investments within the country.

India's Increasing Significance in AI Infrastructure

India has risen as a key destination for AI data centres. India's inexpensive data services and quickly expanding digital audience have turned it into a focal point for expansion of cloud and artificial intelligence for tech giants.

"This center will bring our cutting-edge technology to enterprises and users in the country, speeding up AI development and driving growth across the country," stated Alphabet's chief executive Sundar Pichai.

Project Details

A definitive arrangement to finalise the venture is set to be signed this Tuesday, the Andhra Pradesh government confirmed.

"This represents a massive leap for the digital progression of our state, progress, and international reputation," stated the technology official Nara Lokesh, the technology minister.

The project will integrate computing and artificial intelligence facilities with green energy infrastructure and an broader fiber-optic system.

The State's Data Hub Strategy

The venture is part of the local administration's strategy to create 6 gigawatts of computing facility capacity by 2029.

Data centres are tangible infrastructures that house the networking and computing devices that companies use to gather, analyze, save, and share information.

They feature hosting servers, memory systems and networking hardware like network routers and security firewalls, combined with the necessary power and cooling systems to function properly.

Funding Benefits

Across Andhra Pradesh, the government has been providing reduced-cost property and power to draw global investors.

Industry Growth

The country's computing facility market has developed swiftly during the last five years, exceeding the 1GW capacity mark in 2024 and nearly tripling its 2019 capacity.