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

The infrastructure, to be established in the coastal city of the city of Visakhapatnam, is going to be a segment of Google's international system of artificial intelligence hubs spread across 12 countries.

"This represents the biggest AI hub that we are going to be investing in anywhere in the world, excluding the United States of America," Google Cloud's chief executive stated at an event in capital Delhi on Tuesday, noting that the financial commitment will be spread over the next five years.

The announcement occurs when US President Donald Trump has been urging companies from the United States to give priority to investments within the country.

India's Increasing Significance in AI Infrastructure

India has risen as a prime location for AI data centres. The country's inexpensive data services and swiftly increasing internet user base have turned it into a hub for expansion of cloud and artificial intelligence for technology leaders.

"The infrastructure will bring our cutting-edge technology to businesses and consumers in the nation, enhancing AI development and promoting progress across the country," said Alphabet CEO Sundar Pichai.

Initiative Particulars

An official contract to finalise the project is scheduled for signing soon, local government officials said.

"It constitutes a significant advancement for our state's digital future, progress, and global standing," remarked the state's technology minister Nara Lokesh.

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

Andhra Pradesh's Data Center Vision

The venture is part of the state government's strategy to develop six gigawatts of data centre capacity by 2029.

Data centres are tangible infrastructures that house the computer and network hardware that organizations use to gather, analyze, save, and share information.

They feature hosting servers, memory systems and connectivity devices like routers and firewalls, combined with the essential electricity and temperature control systems to run them.

Financial Attractions

Within the state, the state authorities has been offering reduced-cost property and power to entice international investors.

Sector Expansion

The country's computing facility market has grown rapidly during the last five years, surpassing the 1GW capacity mark in 2024 and almost increasing threefold its 2019 capacity.