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Google's parent company Alphabet plans to commit fifteen billion dollars for constructing an AI data hub in the state of Andhra Pradesh in southern India.

The facility, that is planned in the harbor town of the city of Visakhapatnam, will become a component of the worldwide network of Google of artificial intelligence hubs located in twelve different countries.

"It stands as the greatest artificial intelligence center that we plan to invest in anywhere in the world, outside of the United States," Thomas Kurien said at an conference in Delhi, the national capital on Tuesday, noting that the investment will be allocated over the next five years.

The revelation arrives during a period American President Donald Trump has been encouraging US firms to prioritise domestic investment.

India's Increasing Significance in Artificial Intelligence Infrastructure

India has emerged as a major hub for artificial intelligence facilities. The nation's affordable data pricing and rapidly growing internet user base have turned it into a hub for AI and cloud growth for major tech firms.

"The infrastructure will deliver our pioneering tech solutions to businesses and consumers in the country, accelerating artificial intelligence advancement and driving growth across the country," commented Alphabet CEO Sundar Pichai.

Project Details

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

"It constitutes a significant advancement for our state's digital future, progress, and international reputation," remarked the state's technology minister Nara Lokesh, the technology minister.

The venture will combine AI and cloud systems with renewable energy systems and an expanded fibre-optic network.

Data Infrastructure Plans

This initiative is part of the state government's strategy to develop six gigawatts of computing facility capacity by 2029.

Computing facilities are actual buildings that contain the computing and networking equipment that companies use to accumulate, handle, retain, and circulate data.

They feature computer servers, storage systems and networking hardware like routers and firewalls, along with the essential electricity and temperature control systems to run them.

Financial Attractions

Within the state, the government has been providing subsidised land and power to entice worldwide funders.

Sector Expansion

India's data centre industry has developed swiftly over the past five years, exceeding the 1GW capability milestone in the year 2024 and approximately tripling its 2019 level.