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

The infrastructure, that is planned in the harbor town of the city of Visakhapatnam, will become a segment of Google's global network of AI centres distributed over a dozen nations.

"This represents the biggest AI hub that we are committing funds to across the globe, excluding the United States of America," Thomas Kurien stated at an conference in the capital city of Delhi on Tuesday, noting that the investment will be allocated across the coming five years.

This declaration arrives during a period US President Donald Trump has been urging American companies to focus on local funding.

India's Growing Role in AI Computing

India has become a major hub for artificial intelligence facilities. The country's low data costs and rapidly growing digital audience have turned it into a center for cloud and AI expansion for technology leaders.

"The facility will introduce our pioneering tech solutions to businesses and consumers in the nation, accelerating artificial intelligence advancement and driving growth throughout the nation," commented Alphabet's chief executive Sundar Pichai.

Project Details

A definitive arrangement to complete the initiative is scheduled for signing on Tuesday, state authorities said.

"This represents a major step forward for our state's digital future, progress, and global standing," said the minister for technology Nara Lokesh.

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

The State's Data Hub Strategy

The venture is part of the local administration's plan to establish 6GW of data center capability by the year 2029.

Data centers are physical facilities that accommodate the computer and network hardware that entities use to accumulate, handle, retain, and circulate data.

They contain servers, storage systems and connectivity devices like routers and firewalls, combined with the essential electricity and temperature control systems to operate them.

Investment Incentives

Across Andhra Pradesh, the state authorities has been providing subsidised land and electricity to attract global investors.

Market Development

The nation's data center sector has expanded quickly in the recent half-decade, crossing the one gigawatt capacity threshold in 2024 and approximately tripling its 2019 capacity.