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Alphabet, Google's holding company the Alphabet conglomerate plans to commit $15bn to establish an AI data hub in southern India's Andhra Pradesh state.

The infrastructure, which will be set up in the harbor town of Visakhapatnam, will become a part of Google's global network of AI centres located in twelve different countries.

"It's the largest artificial intelligence center that we plan to invest in worldwide, excluding the United States," Google Cloud's chief executive said at an gathering in Delhi, the national capital this Tuesday, adding that the financial commitment is to be distributed over the next five years.

The revelation occurs when US President Donald Trump has been encouraging companies from the United States to give priority to local funding.

India's Growing Role in AI Computing

India has emerged as a key destination for AI data centres. The country's low data costs and swiftly increasing online population have turned it into a hub for expansion of cloud and artificial intelligence for technology leaders.

"This center will deliver our cutting-edge technology to companies and individuals in India, speeding up AI innovation and driving growth nationwide," said Alphabet's chief executive Sundar Pichai.

Initiative Particulars

A definitive arrangement to complete the venture is set to be signed soon, state authorities confirmed.

"This represents a massive leap for our state's technological advancement, technological innovation, and global standing," said the state's technology minister Nara Lokesh.

The venture will integrate computing and artificial intelligence facilities with sustainable power solutions and an enhanced optical fiber network.

Data Infrastructure Plans

The project is part of the Andhra Pradesh government's plan to create 6GW of data center capability by the year 2029.

Computing facilities are physical facilities that accommodate the networking and computing devices that entities use to gather, analyze, save, and share information.

They feature hosting servers, storage systems and connectivity devices like routers and firewalls, in addition to the required energy and climate management infrastructure to function properly.

Financial Attractions

In Andhra Pradesh, the local administration has been granting discounted land and power to attract global investors.

Sector Expansion

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