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The parent firm of Google the Alphabet conglomerate is set to invest $15 billion to build an artificial intelligence data center in southern India's Andhra Pradesh state.

The infrastructure, that is planned in the harbor town of Visakhapatnam, is set to become a part of Google's international system of AI centres located in a dozen nations.

"It's the largest AI hub that we are committing funds to across the globe, apart from the United States," Google Cloud's chief executive announced at an gathering in the capital city of Delhi recently, adding that the financial commitment will be allocated across the coming five years.

The announcement comes at a time American President Donald Trump has been asking companies from the United States to prioritise investments within the country.

The Expanding Position of India in AI Computing

India has become a key destination for artificial intelligence facilities. The country's low data costs and quickly expanding internet user base have established it as a hub for cloud and AI expansion for tech giants.

"This center will introduce our cutting-edge technology to enterprises and users in the nation, speeding up AI development and driving growth nationwide," commented Alphabet's chief executive Sundar Pichai.

Specifics of the Project

A formal agreement to finalise the venture is set to be signed on Tuesday, local government officials said.

"It is a massive leap for the digital progression of our state, progress, and international reputation," said the technology official Nara Lokesh.

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

Andhra Pradesh's Data Center Vision

The project is included in the local administration's blueprint to develop 6 gigawatts of computing facility capacity by 2029.

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

These include servers, memory systems and networking hardware like firewalls and routers, in addition to the necessary power and cooling systems to function properly.

Investment Incentives

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

Industry Growth

The country's computing facility market has expanded quickly in the recent half-decade, crossing the one gigawatt capacity threshold in 2024 and almost increasing threefold its 2019 capacity.