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Google's parent company the Alphabet conglomerate will invest $15 billion for constructing an AI data hub in the state of Andhra Pradesh in southern India.

This center, to be established in the port city of Visakhapatnam, will become a segment of the worldwide network of Google of artificial intelligence hubs distributed over a dozen nations.

"It's the largest AI facility that we plan to invest in worldwide, apart from the United States of America," Google Cloud's chief executive announced at an conference in Delhi, the national capital recently, mentioning that the funding is to be distributed over the next five years.

The revelation comes at a time President Trump of the United States has been asking US firms to give priority to domestic investment.

India's Increasing Significance in AI Infrastructure

The country has risen as a major hub for AI data centers. India's inexpensive data services and quickly expanding internet user base have made it a hub for cloud and AI expansion for major tech firms.

"The infrastructure will deliver our cutting-edge technology to companies and individuals in the nation, speeding up artificial intelligence advancement and driving growth across the country," stated Alphabet CEO Sundar Pichai.

Project Details

An official contract to finalise the initiative is scheduled for signing soon, the Andhra Pradesh government announced.

"It is a major step forward for the digital progression of our state, technological innovation, and global standing," said the minister for technology Minister Nara Lokesh.

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

Data Infrastructure Plans

The project is included in the local administration's plan to establish six gigawatts of computing facility capacity by 2029.

Data centres are tangible infrastructures that accommodate the computing and networking equipment that entities use to gather, analyze, save, and share information.

They feature hosting servers, storage systems and network equipment like routers and firewalls, combined with the required energy and climate management infrastructure to operate them.

Investment Incentives

In Andhra Pradesh, the local administration has been granting reduced-cost property and power to draw global investors.

Market Development

The country's computing facility market has grown rapidly over the past five years, exceeding the 1GW capacity mark in 2024 and approximately tripling its 2019 capacity.