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Google's parent company Alphabet will invest $15bn to establish an AI computing facility in the state of Andhra Pradesh in southern India.

This center, to be established in the coastal city of Visakhapatnam, is set to become a segment of the worldwide network of Google of AI centres located in twelve different countries.

"It stands as the greatest AI hub that we plan to invest in worldwide, apart from the United States of America," the CEO of Google Cloud said at an event in capital Delhi this Tuesday, mentioning that the financial commitment will be allocated across the coming five years.

This declaration arrives during a period American President Donald Trump has been asking companies from the United States to give priority to local funding.

India's Growing Role in AI Infrastructure

The country has emerged as a major hub for AI data centres. India's low data costs and quickly expanding digital audience have made it a focal point for cloud and AI expansion for major tech firms.

"The infrastructure will bring our pioneering tech solutions to companies and individuals in the nation, speeding up AI innovation and stimulating expansion across the country," stated Sundar Pichai, CEO of Alphabet.

Initiative Particulars

A formal agreement to conclude the initiative is set to be signed on Tuesday, the Andhra Pradesh government said.

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

The venture will merge cloud and AI infrastructure with sustainable power solutions and an expanded fibre-optic network.

Data Infrastructure Plans

This initiative is part of the Andhra Pradesh government's plan to develop 6GW of data center capability by the year 2029.

Data centers are physical facilities that house the networking and computing devices that entities use to collect, process, store, and distribute data.

These include servers, storage systems and connectivity devices like network routers and security firewalls, combined with the essential electricity and temperature control systems to operate them.

Financial Attractions

Within the state, the government has been offering subsidised land and power to entice global investors.

Industry Growth

India's data centre industry has developed swiftly over the past five years, crossing the 1GW capability milestone in 2024 and almost increasing threefold its capability from 2019.