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

The infrastructure, which will be set up in the coastal city of Visakhapatnam city, is set to become a part of the worldwide network of Google of artificial intelligence hubs spread across a dozen nations.

"This represents the biggest AI facility that we are committing funds to across the globe, excluding the US," Thomas Kurien said at an gathering in capital Delhi recently, adding that the investment is to be distributed over the next five years.

This declaration arrives during a period President Trump of the United States has been encouraging American companies to focus on investments within the country.

India's Increasing Significance in Artificial Intelligence Infrastructure

The country has risen as a prime location for AI data centers. The country's inexpensive data services and rapidly growing digital audience have turned it into a hub for cloud and AI expansion for technology leaders.

"The facility will bring our pioneering tech solutions to companies and individuals in the nation, speeding up artificial intelligence advancement and driving growth throughout the nation," said Alphabet CEO Sundar Pichai.

Project Details

An official contract to finalise the project is scheduled for signing on Tuesday, local government officials announced.

"It constitutes a major step forward for the digital progression of our state, innovation, and worldwide position," remarked the technology official Minister Nara Lokesh.

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

The State's Data Hub Strategy

The project is part of the local administration's plan to develop six gigawatts of computing facility capacity by the year 2029.

Data centres are tangible infrastructures that accommodate the networking and computing devices that organizations use to accumulate, handle, retain, and circulate data.

They feature servers, data storage systems and networking hardware like network routers and security firewalls, along with the required energy and climate management infrastructure to run them.

Investment Incentives

Across Andhra Pradesh, the government has been granting subsidised land and electricity to attract global investors.

Sector Expansion

The country's computing facility market has expanded quickly during the last five years, crossing the one gigawatt capacity threshold in the year 2024 and nearly tripling its capability from 2019.