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Google's parent company the Alphabet conglomerate plans to commit $15 billion for constructing an AI data hub in the state of Andhra Pradesh in southern India.

The infrastructure, to be established in the coastal city of the city of Visakhapatnam, is going to be a segment of the worldwide network of Google of artificial intelligence hubs located in a dozen nations.

"It stands as the greatest artificial intelligence center that we are committing funds to anywhere in the world, excluding the US," the CEO of Google Cloud stated at an event in the capital city of Delhi on Tuesday, mentioning that the investment is to be distributed over the next five years.

The announcement occurs when American President Donald Trump has been urging American companies to prioritise local funding.

India's Increasing Significance in Artificial Intelligence Infrastructure

The nation has emerged as a prime location for AI data centres. The country's low data costs and rapidly growing internet user base have made it a hub for cloud and AI expansion for major tech firms.

"This center will bring our industry-leading technology to businesses and consumers in the country, enhancing artificial intelligence advancement and promoting progress across the country," said Sundar Pichai, CEO of Alphabet.

Project Details

A definitive arrangement to finalise the venture is set to be signed on Tuesday, state authorities announced.

"It constitutes a significant advancement for our state's technological advancement, technological innovation, and international reputation," stated the minister for technology Nara Lokesh, the technology minister.

The venture will merge cloud and AI infrastructure with renewable energy systems and an enhanced optical fiber network.

Data Infrastructure Plans

The venture forms part of the Andhra Pradesh government's plan to establish six gigawatts of data centre capacity by 2029.

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

They feature servers, storage systems and connectivity devices like firewalls and routers, along with the necessary power and cooling systems to function properly.

Financial Attractions

Across Andhra Pradesh, the local administration has been granting reduced-cost property and power to attract international investors.

Industry Growth

The nation's data center sector has grown rapidly over the past five years, surpassing the 1GW capacity mark in the year 2024 and nearly tripling its capability from 2019.