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Alphabet, Google's holding company Alphabet plans to commit $15 billion for constructing an artificial intelligence data center in the state of Andhra Pradesh in southern India.

The facility, which will be set up in the port city of the city of Visakhapatnam, is set to become a segment of the worldwide network of Google of AI centres distributed over 12 countries.

"It's the largest artificial intelligence center that we are going to be investing in worldwide, excluding the United States of America," Google Cloud's chief executive said at an conference in Delhi, the national capital on Tuesday, adding that the investment will be allocated across the coming five years.

The announcement comes at a time President Trump of the United States has been urging American companies to prioritise domestic investment.

India's Growing Role in AI Computing

The country has emerged as a key destination for AI data centres. The nation's low data costs and quickly expanding digital audience have established it as a focal point for expansion of cloud and artificial intelligence for technology leaders.

"The infrastructure will bring our cutting-edge technology to companies and individuals in India, accelerating AI innovation and stimulating expansion nationwide," stated Alphabet CEO Sundar Pichai.

Project Details

A formal agreement to finalise the project is scheduled for signing soon, state authorities announced.

"It is a major step forward for our state's technological advancement, progress, and worldwide position," remarked the state's technology minister Nara Lokesh.

This initiative will combine cloud and AI infrastructure with renewable energy systems and an enhanced optical fiber network.

The State's Data Hub Strategy

The project is included in the state government's strategy to establish 6GW of data center capability by 2029.

Data centers are tangible infrastructures that house the networking and computing devices that entities use to accumulate, handle, retain, and circulate data.

These include servers, storage systems and network equipment like network routers and security firewalls, along with the essential electricity and temperature control systems to run them.

Funding Benefits

In Andhra Pradesh, the government has been offering subsidised land and energy to draw international investors.

Sector Expansion

India's data centre industry has expanded quickly over the past five years, surpassing the 1GW capability milestone in 2024 and nearly tripling its 2019 level.