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Alphabet, Google's holding company Alphabet will invest $15bn for constructing an AI computing facility in southern India's Andhra Pradesh state.

The infrastructure, to be established in the harbor town of Visakhapatnam city, will become a part of the worldwide network of Google of AI centers located in a dozen nations.

"It stands as the greatest AI hub that we plan to invest in across the globe, outside of the US," the CEO of Google Cloud announced at an event in capital Delhi recently, adding that the funding will be spread over the next five years.

The revelation arrives during a period President Trump of the United States has been encouraging American companies to focus on investments within the country.

India's Growing Role in AI Infrastructure

The country has become a key destination for AI data centres. India's inexpensive data services and swiftly increasing internet user base have made it a focal point for expansion of cloud and artificial intelligence for tech giants.

"The facility will bring our pioneering tech solutions to companies and individuals in India, accelerating AI innovation and driving growth across the country," commented Alphabet's chief executive Sundar Pichai.

Project Details

An official contract to complete the project will be signed soon, the Andhra Pradesh government announced.

"This represents a significant advancement for the digital progression of our state, innovation, and worldwide position," remarked the state's technology minister Nara Lokesh, the technology minister.

This initiative will merge computing and artificial intelligence facilities with renewable energy systems and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

The venture forms part of the state government's blueprint to develop 6GW of data centre capacity by 2029.

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

These include hosting servers, memory systems and networking hardware like firewalls and routers, in addition to the required energy and climate management infrastructure to run them.

Investment Incentives

Across Andhra Pradesh, the local administration has been granting reduced-cost property and power to entice worldwide funders.

Sector Expansion

India's data centre industry has grown rapidly over the past five years, surpassing the one gigawatt capacity threshold in 2024 and approximately tripling its 2019 level.