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Alphabet, Google's holding company the Alphabet conglomerate is set to invest $15 billion to build an artificial intelligence data center in southern India's Andhra Pradesh state.

The facility, which will be set up in the port city of the city of Visakhapatnam, will become a component of Google's global network of artificial intelligence hubs distributed over 12 countries.

"It's the largest artificial intelligence center that we plan to invest in worldwide, outside of the United States of America," the CEO of Google Cloud said at an event in Delhi, the national capital this Tuesday, noting that the financial commitment will be allocated throughout the next half-decade.

The announcement arrives during a period US President Donald Trump has been asking American companies to focus on domestic investment.

The Expanding Position of India in AI Computing

India has risen as a prime location for AI data centres. The nation's inexpensive data services and quickly expanding digital audience have established it as a center for expansion of cloud and artificial intelligence for tech giants.

"This center will deliver our pioneering tech solutions to businesses and consumers in the nation, enhancing artificial intelligence advancement and stimulating expansion across the country," said Alphabet CEO Sundar Pichai.

Project Details

A definitive arrangement to conclude the initiative will be signed soon, the Andhra Pradesh government confirmed.

"This represents a massive leap for our state's digital future, innovation, and worldwide position," said the technology official Nara Lokesh, the technology minister.

The venture will merge AI and cloud systems with sustainable power solutions and an enhanced optical fiber network.

The State's Data Hub Strategy

The venture is part of the state government's plan to create six gigawatts of computing facility capacity by 2029.

Data centres are actual buildings that house the computing and networking equipment that companies use to accumulate, handle, retain, and circulate data.

They contain computer servers, memory systems and networking hardware like firewalls and routers, in addition to the essential electricity and temperature control systems to function properly.

Financial Attractions

In Andhra Pradesh, the state authorities has been providing reduced-cost property and energy to draw international investors.

Sector Expansion

The country's computing facility market has grown rapidly during the last five years, surpassing the one gigawatt capacity threshold in 2024 and approximately tripling its capability from 2019.