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

The facility, that is planned in the coastal city of the city of Visakhapatnam, is going to be a segment of Google's international system of artificial intelligence hubs spread across 12 countries.

"It stands as the greatest AI hub that we are going to be investing in across the globe, apart from the United States," the CEO of Google Cloud stated at an event in the capital city of Delhi this Tuesday, mentioning that the investment will be allocated throughout the next half-decade.

The revelation occurs when US President Donald Trump has been encouraging companies from the United States to focus on domestic investment.

India's Growing Role in AI Computing

The country has risen as a key destination for AI data centres. The nation's affordable data pricing and quickly expanding digital audience have turned it into a hub for cloud and AI expansion for major tech firms.

"This center will deliver our cutting-edge technology to enterprises and users in the nation, speeding up AI innovation and driving growth nationwide," stated Alphabet's chief executive Sundar Pichai.

Initiative Particulars

A formal agreement to conclude the project is scheduled for signing on Tuesday, local government officials announced.

"It is a massive leap for the digital progression of our state, progress, and global standing," stated the minister for technology Minister Nara Lokesh.

The venture will combine computing and artificial intelligence facilities with sustainable power solutions and an enhanced optical fiber network.

Andhra Pradesh's Data Center Vision

The venture forms part of the state government's plan to create six gigawatts of computing facility capacity by 2029.

Computing facilities are actual buildings that accommodate the computing and networking equipment that entities use to collect, process, store, and distribute data.

These include servers, storage systems and networking hardware like network routers and security firewalls, in addition to the essential electricity and temperature control systems to run them.

Investment Incentives

Within the state, the government has been providing discounted land and electricity to entice international investors.

Market Development

The nation's data center sector has developed swiftly during the last five years, exceeding the 1GW capability milestone in 2024 and approximately tripling its 2019 capacity.