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Google's parent company Alphabet will invest $15bn to establish an AI computing facility in the southern Indian state of Andhra Pradesh.

The infrastructure, that is planned in the harbor town of Visakhapatnam city, is set to become a component of the worldwide network of Google of AI centers located in 12 countries.

"This represents the biggest AI facility that we are committing funds to across the globe, apart from the US," the CEO of Google Cloud said at an event in capital Delhi this Tuesday, adding that the investment will be spread over the next five years.

The revelation arrives during a period US President Donald Trump has been urging companies from the United States to give priority to local funding.

India's Growing Role in AI Infrastructure

The country has risen as a key destination for artificial intelligence facilities. The country's low data costs and quickly expanding digital audience have established it as a center for cloud and AI expansion for major tech firms.

"The facility will introduce our industry-leading technology to enterprises and users in the country, accelerating AI development and stimulating expansion across the country," stated Sundar Pichai, CEO of Alphabet.

Specifics of the Project

A formal agreement to conclude the project is set to be signed this Tuesday, state authorities confirmed.

"It is a major step forward for our state's digital future, innovation, and international reputation," remarked the state's technology minister Nara Lokesh.

This initiative will merge computing and artificial intelligence facilities with sustainable power solutions and an expanded fibre-optic network.

Andhra Pradesh's Data Center Vision

The project is included in the state government's strategy to create 6 gigawatts of data center capability by 2029.

Data centres are physical facilities that contain the networking and computing devices that organizations use to gather, analyze, save, and share information.

They contain computer servers, memory systems and network equipment like network routers and security firewalls, combined with the required energy and climate management infrastructure to operate them.

Financial Attractions

Within the state, the state authorities has been granting discounted land and energy to attract worldwide funders.

Sector Expansion

The country's computing facility market has grown rapidly over the past five years, surpassing the 1GW capability milestone in 2024 and almost increasing threefold its capability from 2019.