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Google's parent company the Alphabet conglomerate plans to commit $15bn to build an artificial intelligence data center in the southern Indian state of Andhra Pradesh.

The facility, which will be set up in the port city of the city of Visakhapatnam, is going to be a segment of Google's international system of artificial intelligence hubs spread across twelve different countries.

"It stands as the greatest AI hub that we plan to invest in anywhere in the world, outside of the United States of America," Thomas Kurien stated at an event in capital Delhi this Tuesday, adding that the funding will be spread throughout the next half-decade.

The announcement occurs when American President Donald Trump has been asking American companies to focus on investments within the country.

The Expanding Position of India in AI Computing

The nation has emerged as a major hub for AI data centers. The nation's affordable data pricing and quickly expanding internet user base have made it a focal point for cloud and AI expansion for major tech firms.

"The facility will deliver our industry-leading technology to enterprises and users in India, enhancing AI development and stimulating expansion nationwide," commented Alphabet's chief executive Sundar Pichai.

Initiative Particulars

A definitive arrangement to finalise the project is set to be signed this Tuesday, local government officials confirmed.

"This represents a significant advancement for our state's technological advancement, technological innovation, and global standing," said the state's technology minister Nara Lokesh.

This initiative will integrate cloud and AI infrastructure with green energy infrastructure and an broader fiber-optic system.

Data Infrastructure Plans

The project forms part of the Andhra Pradesh government's plan to establish 6 gigawatts of computing facility capacity by 2029.

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

They contain hosting servers, memory systems and network equipment like network routers and security firewalls, in addition to the required energy and climate management infrastructure to run them.

Financial Attractions

Across Andhra Pradesh, the local administration has been providing reduced-cost property and energy to draw worldwide funders.

Industry Growth

The country's computing facility market has grown rapidly over the past five years, surpassing the one gigawatt capacity threshold in 2024 and nearly tripling its 2019 level.