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

The infrastructure, to be established in the harbor town of Visakhapatnam, is going to be a part of Google's international system of AI centres distributed over twelve different countries.

"It stands as the greatest AI hub that we are going to be investing in worldwide, excluding the US," the CEO of Google Cloud said at an conference in Delhi, the national capital recently, noting that the funding will be spread over the next five years.

The announcement occurs when US President Donald Trump has been encouraging American companies to prioritise investments within the country.

India's Growing Role in AI Infrastructure

India has risen as a major hub for artificial intelligence facilities. The nation's affordable data pricing and rapidly growing internet user base have established it as a focal point for cloud and AI expansion for major tech firms.

"This center will deliver our industry-leading technology to businesses and consumers in the country, accelerating AI innovation and stimulating expansion across the country," stated Alphabet CEO Sundar Pichai.

Specifics of the Project

A formal agreement to complete the project is set to be signed on Tuesday, state authorities said.

"It is a significant advancement for our state's technological advancement, technological innovation, and global standing," remarked the state's technology minister Nara Lokesh.

This initiative will combine cloud and AI infrastructure with renewable energy systems and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

The venture is part of the Andhra Pradesh government's strategy to develop six gigawatts of computing facility capacity by 2029.

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

They contain hosting servers, data storage systems and network equipment like network routers and security firewalls, in addition to the essential electricity and temperature control systems to operate them.

Financial Attractions

Within the state, the state authorities has been granting subsidised land and electricity to entice global investors.

Sector Expansion

India's data centre industry has developed swiftly over the past five years, surpassing the 1GW capability milestone in 2024 and almost increasing threefold its capability from 2019.