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The parent firm of Google Alphabet Inc. is set to invest $15 billion to establish an AI data hub in the state of Andhra Pradesh in southern India.

The infrastructure, which will be set up in the port city of Visakhapatnam city, will become a segment of the worldwide network of Google of AI centres distributed over a dozen nations.

"It's the largest artificial intelligence center that we plan to invest in anywhere in the world, excluding the US," the CEO of Google Cloud announced at an event in Delhi, the national capital this Tuesday, adding that the financial commitment is to be distributed over the next five years.

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

India's Increasing Significance in Artificial Intelligence Infrastructure

The nation has become a key destination for artificial intelligence facilities. India's affordable data pricing and swiftly increasing internet user base have made it a focal point for AI and cloud growth for technology leaders.

"The infrastructure will introduce our cutting-edge technology to enterprises and users in the country, accelerating AI development and promoting progress throughout the nation," commented Alphabet's chief executive Sundar Pichai.

Specifics of the Project

An official contract to complete the initiative is scheduled for signing on Tuesday, local government officials confirmed.

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

The project will integrate AI and cloud systems with green energy infrastructure and an expanded fibre-optic network.

Andhra Pradesh's Data Center Vision

This initiative is included in the state government's strategy to create six gigawatts of data centre capacity by the year 2029.

Data centres are tangible infrastructures that house the computer and network hardware that organizations use to gather, analyze, save, and share information.

They contain hosting servers, storage systems and connectivity devices like routers and firewalls, along with the necessary power and cooling systems to operate them.

Investment Incentives

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

Industry Growth

India's data centre industry has expanded quickly during the last five years, exceeding the 1GW capacity mark in 2024 and nearly tripling its capability from 2019.