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The parent firm of Google the Alphabet conglomerate will invest $15bn to build an AI data hub in southern India's Andhra Pradesh state.

The facility, which will be set up in the harbor town of the city of Visakhapatnam, is set to become a segment of the worldwide network of Google of AI centers located in twelve different countries.

"This represents the biggest AI hub that we plan to invest in worldwide, outside of the United States of America," the CEO of Google Cloud stated at an event in capital Delhi recently, adding that the financial commitment is to be distributed over the next five years.

The revelation arrives during a period US President Donald Trump has been asking US firms to focus on local funding.

The Expanding Position of India in Artificial Intelligence Infrastructure

India has emerged as a major hub for AI data centres. The nation's inexpensive data services and swiftly increasing digital audience have turned it into a hub for expansion of cloud and artificial intelligence for major tech firms.

"The infrastructure will introduce our pioneering tech solutions to enterprises and users in India, speeding up AI innovation and stimulating expansion throughout the nation," commented Sundar Pichai, CEO of Alphabet.

Project Details

An official contract to complete the project will be signed on Tuesday, local government officials announced.

"It constitutes a significant advancement for our state's technological advancement, progress, and international reputation," remarked the state's technology minister Nara Lokesh.

The venture will combine AI and cloud systems with green energy infrastructure and an broader fiber-optic system.

Data Infrastructure Plans

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

Data centers are actual buildings that house the computing and networking equipment that organizations use to accumulate, handle, retain, and circulate data.

They feature servers, memory systems and network equipment like routers and firewalls, in addition to the required energy and climate management infrastructure to function properly.

Investment Incentives

Across Andhra Pradesh, the government has been offering discounted land and energy to draw worldwide funders.

Industry Growth

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