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Alphabet, Google's holding company Alphabet Inc. plans to commit fifteen billion dollars to establish an AI data hub in the state of Andhra Pradesh in southern India.

The facility, that is planned in the coastal city of Visakhapatnam city, is going to be a component of Google's global network of AI centers spread across 12 countries.

"This represents the biggest AI hub that we are committing funds to across the globe, apart from the United States of America," Thomas Kurien said at an event in capital Delhi on Tuesday, noting that the funding will be allocated over the next five years.

The revelation occurs when US President Donald Trump has been asking companies from the United States to focus on investments within the country.

India's Growing Role in AI Infrastructure

The country has emerged as a prime location for AI data centers. The country's low data costs and quickly expanding digital audience have turned it into a focal point for AI and cloud growth for major tech firms.

"The infrastructure will bring our industry-leading technology to companies and individuals in the country, enhancing AI development and driving growth across the country," commented Alphabet's chief executive Sundar Pichai.

Initiative Particulars

A definitive arrangement to finalise the project is scheduled for signing on Tuesday, the Andhra Pradesh government confirmed.

"It is a massive leap for our state's digital future, innovation, and worldwide position," remarked the minister for technology Minister Nara Lokesh.

This initiative will merge AI and cloud systems with renewable energy systems and an expanded fibre-optic network.

Andhra Pradesh's Data Center Vision

The project is included in the state government's strategy to establish six gigawatts of data center capability by the year 2029.

Data centres are physical facilities that contain the computing and networking equipment that entities use to collect, process, store, and distribute data.

They contain servers, data storage systems and networking hardware like firewalls and routers, along with the necessary power and cooling systems to run them.

Financial Attractions

Within the state, the state authorities has been providing subsidised land and electricity to attract international investors.

Market Development

The nation's data center sector has developed swiftly during the last five years, crossing the 1GW capability milestone in 2024 and almost increasing threefold its capability from 2019.