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Alphabet, Google's holding company the Alphabet conglomerate is set to invest $15 billion for constructing an artificial intelligence data center in the state of Andhra Pradesh in southern India.

The facility, which will be set up in the port city of Visakhapatnam, is going to be a segment of Google's international system of AI centers spread across twelve different countries.

"It's the largest AI facility that we plan to invest in anywhere in the world, excluding the United States of America," the CEO of Google Cloud stated at an event in capital Delhi this Tuesday, mentioning that the financial commitment is to be distributed across the coming five years.

The revelation arrives during a period US President Donald Trump has been encouraging companies from the United States to give priority to investments within the country.

India's Increasing Significance in Artificial Intelligence Infrastructure

The country has emerged as a prime location for artificial intelligence facilities. India's low data costs and rapidly growing internet user base have turned it into a hub for cloud and AI expansion for tech giants.

"The facility will bring our industry-leading technology to companies and individuals in the nation, enhancing artificial intelligence advancement and driving growth throughout the nation," stated Alphabet's chief executive Sundar Pichai.

Specifics of the Project

An official contract to finalise the initiative is scheduled for signing this Tuesday, local government officials announced.

"It is a significant advancement for the digital progression of our state, technological innovation, and international reputation," said the state's technology minister Nara Lokesh.

The project will merge computing and artificial intelligence facilities with green energy infrastructure and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

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

Computing facilities are actual buildings that contain the networking and computing devices that organizations use to gather, analyze, save, and share information.

They feature servers, data storage systems and networking hardware like routers and firewalls, in addition to the necessary power and cooling systems to function properly.

Funding Benefits

In Andhra Pradesh, the local administration has been providing discounted land and energy to draw worldwide funders.

Industry Growth

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