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Alphabet, Google's holding company the Alphabet conglomerate plans to commit $15 billion to establish an AI data hub in southern India's Andhra Pradesh state.

This center, to be established in the port city of Visakhapatnam, is set to become a segment of Google's international system of AI centres spread across 12 countries.

"It's the largest AI hub that we are committing funds to across the globe, outside of the US," Google Cloud's chief executive stated at an gathering in Delhi, the national capital recently, noting that the funding will be allocated across the coming five years.

The announcement arrives during a period US President Donald Trump has been asking companies from the United States to give priority to domestic investment.

India's Growing Role in Artificial Intelligence Infrastructure

The nation has emerged as a prime location for artificial intelligence facilities. India's inexpensive data services and rapidly growing internet user base have established it as a hub for cloud and AI expansion for technology leaders.

"This center will deliver our industry-leading technology to companies and individuals in India, accelerating AI innovation and driving growth across the country," said Sundar Pichai, CEO of Alphabet.

Specifics of the Project

A formal agreement to conclude the initiative is scheduled for signing soon, local government officials said.

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

This initiative will integrate computing and artificial intelligence facilities with sustainable power solutions and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

This initiative is part of the state government's plan to create six gigawatts of data centre capacity by 2029.

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

They feature computer servers, storage systems and networking hardware like network routers and security firewalls, in addition to the necessary power and cooling systems to operate them.

Funding Benefits

Within the state, the government has been providing discounted land and energy to entice worldwide funders.

Market Development

The nation's data center sector has developed swiftly over the past five years, exceeding the one gigawatt capacity threshold in 2024 and almost increasing threefold its 2019 capacity.