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Google's parent company Alphabet Inc. will invest $15bn to establish an AI data hub in the state of Andhra Pradesh in southern India.

The infrastructure, to be established in the port city of Visakhapatnam, is set to become a part of Google's global network of AI centres located in 12 countries.

"It's the largest AI facility that we plan to invest in anywhere in the world, apart from the United States of America," the CEO of Google Cloud announced at an event in Delhi, the national capital on Tuesday, noting that the investment is to be distributed across the coming five years.

The revelation arrives during a period American President Donald Trump has been asking companies from the United States to focus on domestic investment.

India's Growing Role in AI Infrastructure

The nation has emerged as a key destination for AI data centres. The nation's affordable data pricing and swiftly increasing internet user base have made it a focal point for cloud and AI expansion for technology leaders.

"This center will introduce our industry-leading technology to companies and individuals in the country, enhancing AI development and promoting progress across the country," commented Alphabet's chief executive Sundar Pichai.

Specifics of the Project

A formal agreement to conclude the venture is set to be signed on Tuesday, local government officials said.

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

The project will merge AI and cloud systems with renewable energy systems and an expanded fibre-optic network.

Andhra Pradesh's Data Center Vision

The venture is part of the state government's strategy to establish 6GW of data center capability by 2029.

Computing facilities are tangible infrastructures that accommodate the networking and computing devices that entities use to collect, process, store, and distribute data.

These include computer servers, storage systems and network equipment like firewalls and routers, combined with the required energy and climate management infrastructure to function properly.

Investment Incentives

In Andhra Pradesh, the state authorities has been providing discounted land and energy to attract international investors.

Industry Growth

India's data centre industry has developed swiftly in the recent half-decade, surpassing the one gigawatt capacity threshold in 2024 and almost increasing threefold its 2019 capacity.