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Google's parent company the Alphabet conglomerate will invest $15bn to build an AI computing facility in the state of Andhra Pradesh in southern India.

This center, which will be set up in the coastal city of the city of Visakhapatnam, is going to be a part of Google's global network of AI centres located in 12 countries.

"It's the largest AI facility that we are going to be investing in across the globe, excluding the US," Google Cloud's chief executive said at an event in Delhi, the national capital this Tuesday, adding that the investment will be allocated over the next five years.

The revelation arrives during a period American President Donald Trump has been urging US firms to focus on domestic investment.

The Expanding Position of India in AI Infrastructure

The country has become a key destination for AI data centres. The nation's inexpensive data services and swiftly increasing digital audience have made it a focal point for expansion of cloud and artificial intelligence for technology leaders.

"The infrastructure will bring our pioneering tech solutions to companies and individuals in the nation, accelerating artificial intelligence advancement and stimulating expansion nationwide," stated Alphabet CEO Sundar Pichai.

Initiative Particulars

A formal agreement to complete the initiative is set to be signed soon, local government officials confirmed.

"It constitutes a major step forward for our state's digital future, progress, and global standing," said the minister for technology Nara Lokesh.

The project will integrate computing and artificial intelligence facilities with sustainable power solutions and an enhanced optical fiber network.

Andhra Pradesh's Data Center Vision

This initiative is part of the Andhra Pradesh government's blueprint to create 6GW of data centre capacity by the year 2029.

Data centers are actual buildings that accommodate the computing and networking equipment that organizations use to accumulate, handle, retain, and circulate data.

They feature servers, storage systems and connectivity devices like firewalls and routers, combined with the necessary power and cooling systems to operate them.

Financial Attractions

Within the state, the government has been providing discounted land and energy to draw international investors.

Sector Expansion

The country's computing facility market has grown rapidly during the last five years, exceeding the one gigawatt capacity threshold in the year 2024 and approximately tripling its capability from 2019.