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Google's parent company Alphabet will invest $15 billion to build an artificial intelligence data center in the southern Indian state of Andhra Pradesh.

This center, to be established in the harbor town of Visakhapatnam, is going to be a part of the worldwide network of Google of AI centres located in a dozen nations.

"This represents the biggest AI facility that we are committing funds to across the globe, outside of the US," the CEO of Google Cloud announced at an conference in the capital city of Delhi on Tuesday, mentioning that the funding will be allocated across the coming five years.

The announcement arrives during a period US President Donald Trump has been urging companies from the United States to focus on domestic investment.

India's Increasing Significance in Artificial Intelligence Infrastructure

The country has become a prime location for artificial intelligence facilities. India's inexpensive data services and rapidly growing online population have established it as a center for expansion of cloud and artificial intelligence for technology leaders.

"The facility will bring our cutting-edge technology to companies and individuals in the nation, enhancing AI development and driving growth nationwide," commented Alphabet's chief executive Sundar Pichai.

Specifics of the Project

An official contract to conclude the initiative is set to be signed soon, local government officials confirmed.

"It is a major step forward for the digital progression of our state, progress, and international reputation," remarked the state's technology minister Minister Nara Lokesh.

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

Andhra Pradesh's Data Center Vision

This initiative is part of the Andhra Pradesh government's strategy to establish 6GW of data center capability by 2029.

Computing facilities are physical facilities that house the networking and computing devices that companies use to collect, process, store, and distribute data.

They contain hosting servers, memory systems and connectivity devices like firewalls and routers, in addition to the essential electricity and temperature control systems to run them.

Investment Incentives

Across Andhra Pradesh, the local administration has been offering reduced-cost property and power to draw global investors.

Market Development

The nation's data center sector has developed swiftly during the last five years, surpassing the 1GW capability milestone in the year 2024 and nearly tripling its 2019 level.