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Google's parent company Alphabet Inc. will invest $15 billion for constructing an artificial intelligence data center in southern India's Andhra Pradesh state.

This center, which will be set up in the port city of Visakhapatnam, is set to become a segment of the worldwide network of Google of artificial intelligence hubs spread across a dozen nations.

"It stands as the greatest AI hub that we are going to be investing in across the globe, apart from the United States of America," Google Cloud's chief executive announced at an conference in Delhi, the national capital recently, mentioning that the funding is to be distributed throughout the next half-decade.

The revelation arrives during a period American President Donald Trump has been asking American companies to focus on investments within the country.

The Expanding Position of India in Artificial Intelligence Infrastructure

The nation has become a key destination for AI data centres. India's affordable data pricing and rapidly growing online population have made it a center for expansion of cloud and artificial intelligence for tech giants.

"The facility will bring our cutting-edge technology to companies and individuals in India, speeding up AI development and promoting progress across the country," commented Alphabet CEO Sundar Pichai.

Specifics of the Project

An official contract to conclude the venture is set to be signed this Tuesday, local government officials announced.

"It constitutes a significant advancement for the digital progression of our state, technological innovation, and worldwide position," said the minister for technology Nara Lokesh.

The venture will combine AI and cloud systems with sustainable power solutions and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

This initiative forms part of the local administration's strategy to create six gigawatts of computing facility capacity by 2029.

Data centers are tangible infrastructures that contain the computing and networking equipment that companies use to accumulate, handle, retain, and circulate data.

They feature hosting servers, memory systems and network equipment like routers and firewalls, along with the essential electricity and temperature control systems to run them.

Funding Benefits

Across Andhra Pradesh, the state authorities has been providing discounted land and electricity to draw global investors.

Industry Growth

The country's computing facility market has developed swiftly during the last five years, exceeding the 1GW capacity mark in 2024 and approximately tripling its capability from 2019.