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

The facility, to be established in the coastal city of Visakhapatnam, will become a segment of Google's global network of AI centers located in a dozen nations.

"This represents the biggest AI hub that we plan to invest in worldwide, excluding the US," the CEO of Google Cloud announced at an event in Delhi, the national capital on Tuesday, noting that the investment is to be distributed over the next five years.

The announcement arrives during a period US President Donald Trump has been urging US firms to focus on domestic investment.

The Expanding Position of India in AI Infrastructure

India has emerged as a prime location for AI data centers. The country's inexpensive data services and rapidly growing internet user base have made it a focal point for AI and cloud growth for technology leaders.

"This center will introduce our cutting-edge technology to businesses and consumers in India, enhancing AI development and promoting progress throughout the nation," stated Alphabet's chief executive Sundar Pichai.

Project Details

A formal agreement to conclude the project will be signed on Tuesday, local government officials confirmed.

"This represents a massive leap for our state's digital future, progress, and international reputation," said the state's technology minister Nara Lokesh.

This initiative will merge computing and artificial intelligence facilities with green energy infrastructure and an enhanced optical fiber network.

Data Infrastructure Plans

The project is part of the local administration's plan to develop six gigawatts of data centre capacity by 2029.

Data centers are actual buildings that accommodate the computer and network hardware that companies use to gather, analyze, save, and share information.

These include computer servers, storage systems and connectivity devices like routers and firewalls, combined with the essential electricity and temperature control systems to run them.

Funding Benefits

Across Andhra Pradesh, the state authorities has been providing reduced-cost property and electricity to entice global investors.

Sector Expansion

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