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The parent firm of Google the Alphabet conglomerate will invest fifteen billion dollars for constructing an AI data hub in southern India's Andhra Pradesh state.

This center, that is planned in the harbor town of Visakhapatnam city, is going to be a component of the worldwide network of Google of AI centers distributed over twelve different countries.

"It's the largest AI facility that we are going to be investing in worldwide, apart from the United States," the CEO of Google Cloud announced at an gathering in the capital city of Delhi recently, mentioning that the investment will be allocated over the next five years.

This declaration arrives during a period American President Donald Trump has been urging American companies to focus on local funding.

India's Increasing Significance in AI Computing

India has risen as a prime location for AI data centres. The nation's inexpensive data services and quickly expanding internet user base have made it a hub for AI and cloud growth for technology leaders.

"This center will bring our industry-leading technology to businesses and consumers in the nation, enhancing AI development and driving growth nationwide," commented Sundar Pichai, CEO of Alphabet.

Project Details

An official contract to complete the project is set to be signed on Tuesday, the Andhra Pradesh government announced.

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

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

The State's Data Hub Strategy

This initiative forms part of the Andhra Pradesh government's blueprint to create 6 gigawatts of data centre capacity by the year 2029.

Data centers are physical facilities that contain the computing and networking equipment that companies use to accumulate, handle, retain, and circulate data.

They contain computer servers, data storage systems and network equipment like network routers and security firewalls, in addition to the necessary power and cooling systems to run them.

Financial Attractions

Within the state, the government has been offering subsidised land and energy to draw international investors.

Market Development

The country's computing facility market has grown rapidly over the past five years, surpassing the 1GW capacity mark in 2024 and nearly tripling its capability from 2019.