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The parent firm of Google Alphabet plans to commit $15bn for constructing an AI data hub in southern India's Andhra Pradesh state.

The infrastructure, that is planned in the coastal city of Visakhapatnam city, is set to become a component of Google's international system of AI centers distributed over a dozen nations.

"It's the largest AI hub that we are going to be investing in worldwide, outside of the United States," Google Cloud's chief executive announced at an event in Delhi, the national capital on Tuesday, adding that the investment will be spread throughout the next half-decade.

The revelation arrives during a period President Trump of the United States has been encouraging American companies to prioritise domestic investment.

The Expanding Position of India in AI Computing

The nation has emerged as a prime location for artificial intelligence facilities. The nation's affordable data pricing and swiftly increasing internet user base have turned it into a center for cloud and AI expansion for technology leaders.

"The infrastructure will introduce our cutting-edge technology to companies and individuals in the nation, enhancing AI development and promoting progress across the country," commented Alphabet's chief executive Sundar Pichai.

Project Details

An official contract to complete the project will be signed on Tuesday, state authorities said.

"It constitutes a major step forward for our state's technological advancement, progress, and global standing," remarked the minister for technology Minister Nara Lokesh.

The project will integrate AI and cloud systems with renewable energy systems and an enhanced optical fiber network.

Data Infrastructure Plans

The venture forms part of the local administration's strategy to create six gigawatts of computing facility capacity by 2029.

Data centres are actual buildings that contain the networking and computing devices that organizations use to collect, process, store, and distribute data.

These include computer servers, storage systems and connectivity devices like firewalls and routers, along with the essential electricity and temperature control systems to function properly.

Investment Incentives

In Andhra Pradesh, the government has been granting reduced-cost property and energy to entice international investors.

Sector Expansion

India's data centre industry has grown rapidly during the last five years, exceeding the 1GW capacity mark in 2024 and approximately tripling its 2019 level.