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The parent firm of Google Alphabet Inc. is set to invest $15bn to build an artificial intelligence data center in the southern Indian state of Andhra Pradesh.

This center, to be established in the harbor town of Visakhapatnam city, is set to become a component of the worldwide network of Google of artificial intelligence hubs distributed over a dozen nations.

"This represents the biggest AI hub that we are going to be investing in worldwide, apart from the US," Thomas Kurien stated at an conference in Delhi, the national capital on Tuesday, adding that the investment will be allocated throughout the next half-decade.

The announcement comes at a time President Trump of the United States has been encouraging American companies to give priority to domestic investment.

India's Growing Role in AI Computing

The nation has risen as a major hub for AI data centres. India's affordable data pricing and quickly expanding digital audience have made it a center for AI and cloud growth for technology leaders.

"The facility will bring our cutting-edge technology to enterprises and users in the country, speeding up AI development and stimulating expansion throughout the nation," commented Sundar Pichai, CEO of Alphabet.

Specifics of the Project

A definitive arrangement to complete the project will be signed this Tuesday, local government officials said.

"This represents a major step forward for our state's technological advancement, progress, and worldwide position," stated the state's technology minister Nara Lokesh.

The project will integrate cloud and AI infrastructure with sustainable power solutions and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

The venture is part of the state government's plan to establish six gigawatts of data centre capacity by 2029.

Data centres are physical facilities that accommodate the networking and computing devices that entities use to gather, analyze, save, and share information.

These include computer servers, data storage systems and networking hardware like routers and firewalls, in addition to the required energy and climate management infrastructure to operate them.

Financial Attractions

In Andhra Pradesh, the state authorities has been providing discounted land and electricity to draw worldwide funders.

Market Development

The country's computing facility market has grown rapidly during the last five years, surpassing the one gigawatt capacity threshold in the year 2024 and almost increasing threefold its 2019 capacity.