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The parent firm of Google Alphabet plans to commit $15bn to establish an artificial intelligence data center in the state of Andhra Pradesh in southern India.

The infrastructure, to be established in the port city of the city of Visakhapatnam, is going to be a segment of Google's global network of AI centers spread across twelve different countries.

"This represents the biggest AI hub that we are committing funds to anywhere in the world, excluding the US," Thomas Kurien said at an event in Delhi, the national capital on Tuesday, adding that the funding will be spread over the next five years.

This declaration arrives during a period American President Donald Trump has been urging American companies to give priority to investments within the country.

The Expanding Position of India in Artificial Intelligence Infrastructure

India has risen as a key destination for AI data centres. The country's low data costs and quickly expanding digital audience have established it as a center for expansion of cloud and artificial intelligence for tech giants.

"This center will deliver our cutting-edge technology to businesses and consumers in the nation, speeding up AI innovation and driving growth across the country," commented Alphabet's chief executive Sundar Pichai.

Specifics of the Project

A definitive arrangement to finalise the venture is set to be signed on Tuesday, local government officials announced.

"This represents a major step forward for the digital progression of our state, technological innovation, and global standing," remarked the state's technology minister Nara Lokesh, the technology minister.

The project will combine AI and cloud systems with sustainable power solutions and an enhanced optical fiber network.

Data Infrastructure Plans

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

Data centres are actual buildings that accommodate the computing and networking equipment that organizations use to gather, analyze, save, and share information.

They contain servers, data storage systems and connectivity devices like firewalls and routers, along with the essential electricity and temperature control systems to function properly.

Investment Incentives

Within the state, the state authorities has been providing subsidised land and energy to entice worldwide funders.

Industry Growth

India's data centre industry has grown rapidly in the recent half-decade, surpassing the one gigawatt capacity threshold in the year 2024 and almost increasing threefold its capability from 2019.