🔗 Share this article

Google's parent company Alphabet Inc. will invest $15bn to build an AI data hub in the southern Indian state of Andhra Pradesh.

The facility, to be established in the coastal city of the city of Visakhapatnam, will become a part of Google's international system of AI centres located in 12 countries.

"This represents the biggest AI hub that we plan to invest in across the globe, excluding the United States of America," Google Cloud's chief executive said at an conference in the capital city of Delhi on Tuesday, noting that the funding is to be distributed over the next five years.

This declaration comes at a time President Trump of the United States has been asking companies from the United States to give priority to local funding.

India's Increasing Significance in AI Computing

The nation has become a key destination for AI data centers. India's low data costs and quickly expanding online population have turned it into a hub for cloud and AI expansion for technology leaders.

"The infrastructure will deliver our cutting-edge technology to enterprises and users in India, enhancing AI development and driving growth throughout the nation," commented Sundar Pichai, CEO of Alphabet.

Specifics of the Project

A formal agreement to complete the project is set to be signed on Tuesday, state authorities confirmed.

"This represents a massive leap for our state's technological advancement, progress, and international reputation," said the state's technology minister Minister Nara Lokesh.

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

Andhra Pradesh's Data Center Vision

The venture is part of the local administration's plan to create six gigawatts of data centre capacity by the year 2029.

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

They contain servers, storage systems and connectivity devices like firewalls and routers, along with the required energy and climate management infrastructure to function properly.

Financial Attractions

Across Andhra Pradesh, the local administration has been offering subsidised land and electricity to entice global investors.

Market Development

The nation's data center sector has developed swiftly during the last five years, exceeding the 1GW capacity mark in the year 2024 and approximately tripling its 2019 capacity.