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Alphabet, Google's holding company Alphabet plans to commit fifteen billion dollars for constructing an artificial intelligence data center in the southern Indian state of Andhra Pradesh.

The infrastructure, that is planned in the harbor town of Visakhapatnam, is going to be a part of Google's international system of AI centres located in a dozen nations.

"It's the largest artificial intelligence center that we are committing funds to across the globe, apart from the US," Thomas Kurien announced at an event in the capital city of Delhi on Tuesday, adding that the funding will be allocated over the next five years.

The revelation occurs when US President Donald Trump has been urging American companies to prioritise local funding.

India's Growing Role in AI Computing

The nation has emerged as a major hub for AI data centres. The nation's low data costs and quickly expanding internet user base have turned it into a center for cloud and AI expansion for technology leaders.

"This center will introduce our pioneering tech solutions to companies and individuals in the country, enhancing AI development and stimulating expansion across the country," stated Alphabet CEO Sundar Pichai.

Project Details

A formal agreement to complete the venture will be signed this Tuesday, the Andhra Pradesh government announced.

"It is a major step forward for our state's digital future, technological innovation, and worldwide position," stated the minister for technology Minister Nara Lokesh.

The venture will merge cloud and AI infrastructure with renewable energy systems and an expanded fibre-optic network.

Data Infrastructure Plans

The venture forms part of the Andhra Pradesh government's plan to develop 6 gigawatts of data center capability by 2029.

Data centres are tangible infrastructures that accommodate the computing and networking equipment that companies use to gather, analyze, save, and share information.

They feature servers, storage systems and connectivity devices like firewalls and routers, along with the required energy and climate management infrastructure to run them.

Investment Incentives

In Andhra Pradesh, the local administration has been offering reduced-cost property and energy to attract international investors.

Industry Growth

India's data centre industry has expanded quickly during the last five years, exceeding the 1GW capacity mark in 2024 and approximately tripling its capability from 2019.