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The parent firm of Google Alphabet Inc. plans to commit fifteen billion dollars to build an AI data hub in southern India's Andhra Pradesh state.

This center, to be established in the harbor town of Visakhapatnam, is set to become a segment of Google's global network of AI centers spread across a dozen nations.

"It's the largest AI hub that we are going to be investing in across the globe, apart from the United States of America," Google Cloud's chief executive announced at an conference in Delhi, the national capital this Tuesday, noting that the investment will be allocated across the coming five years.

This declaration arrives during a period American President Donald Trump has been urging American companies to focus on local funding.

The Expanding Position of India in Artificial Intelligence Infrastructure

The nation has become a key destination for AI data centers. The country's affordable data pricing and rapidly growing internet user base have established it as a focal point for cloud and AI expansion for technology leaders.

"The facility will introduce our industry-leading technology to enterprises and users in the nation, enhancing AI innovation and promoting progress across the country," said Alphabet's chief executive Sundar Pichai.

Project Details

A definitive arrangement to complete the project is scheduled for signing on Tuesday, the Andhra Pradesh government said.

"It is a massive leap for the digital progression of our state, progress, and international reputation," said the state's technology minister Nara Lokesh.

The project will integrate computing and artificial intelligence facilities with renewable energy systems and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

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

Computing facilities are physical facilities that house the networking and computing devices that entities use to collect, process, store, and distribute data.

They feature computer servers, data storage systems and network equipment like firewalls and routers, in addition to the necessary power and cooling systems to run them.

Funding Benefits

Within the state, the state authorities has been offering subsidised land and power to attract worldwide funders.

Sector Expansion

The country's computing facility market has grown rapidly in the recent half-decade, exceeding the one gigawatt capacity threshold in the year 2024 and almost increasing threefold its capability from 2019.