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

This center, which will be set up in the coastal city of Visakhapatnam, is going to be a component of Google's global network of AI centres located in 12 countries.

"It's the largest AI hub that we are committing funds to across the globe, excluding the United States," the CEO of Google Cloud announced at an conference in capital Delhi recently, noting that the investment will be allocated over the next five years.

This declaration arrives during a period President Trump of the United States has been encouraging US firms to give priority to local funding.

India's Growing Role in AI Infrastructure

The country has become a key destination for AI data centers. The nation's affordable data pricing and swiftly increasing digital audience have made it a center for AI and cloud growth for major tech firms.

"The infrastructure will bring our cutting-edge technology to enterprises and users in the nation, enhancing AI development and promoting progress across the country," said Alphabet CEO Sundar Pichai.

Project Details

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

"It is a major step forward for the digital progression of our state, progress, and global standing," remarked the minister for technology Nara Lokesh.

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

The State's Data Hub Strategy

This initiative is included in the state government's strategy to develop 6 gigawatts of data center capability by 2029.

Data centres are physical facilities that accommodate the computer and network hardware that entities use to accumulate, handle, retain, and circulate data.

They contain servers, storage systems and connectivity devices like network routers and security firewalls, along with the necessary power and cooling systems to run them.

Funding Benefits

Within the state, the local administration has been offering subsidised land and power to draw international investors.

Industry Growth

India's data centre industry has expanded quickly over the past five years, surpassing the one gigawatt capacity threshold in the year 2024 and nearly tripling its 2019 capacity.