🔗 Share this article

Google's parent company Alphabet will invest $15 billion to build an AI computing facility in the southern Indian state of Andhra Pradesh.

The facility, which will be set up in the harbor town of Visakhapatnam, will 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 are committing funds to worldwide, excluding the US," Thomas Kurien said at an conference in Delhi, the national capital this Tuesday, noting that the funding will be spread across the coming five years.

The announcement arrives during a period US President Donald Trump has been urging US firms to focus on investments within the country.

India's Increasing Significance in Artificial Intelligence Infrastructure

India has emerged as a major hub for AI data centres. The country's inexpensive data services and rapidly growing digital audience have established it as a focal point for expansion of cloud and artificial intelligence for technology leaders.

"This center will introduce our industry-leading technology to companies and individuals in India, enhancing AI development and promoting progress nationwide," commented Alphabet's chief executive Sundar Pichai.

Project Details

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

"It is a massive leap for our state's digital future, innovation, and worldwide position," said the technology official Nara Lokesh.

This initiative will integrate AI and cloud systems with green energy infrastructure and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

The venture is included in the local administration's plan to develop 6GW of computing facility capacity by 2029.

Data centres are actual buildings that house the networking and computing devices that entities use to collect, process, store, and distribute data.

They feature servers, storage systems and network equipment like routers and firewalls, in addition to the essential electricity and temperature control systems to operate them.

Financial Attractions

Within the state, the local administration has been offering discounted land and energy to draw international investors.

Market Development

The country's computing facility market has expanded quickly during the last five years, exceeding the 1GW capacity mark in 2024 and nearly tripling its capability from 2019.