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Google's parent company Alphabet will invest $15bn to establish an artificial intelligence data center in the state of Andhra Pradesh in southern India.

The facility, to be established in the harbor town of the city of Visakhapatnam, will become a part of the worldwide network of Google of AI centers spread across twelve different countries.

"It stands as the greatest AI facility that we are going to be investing in worldwide, outside of the United States of America," the CEO of Google Cloud announced at an conference in the capital city of Delhi this Tuesday, adding that the funding will be allocated over the next five years.

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

India's Growing Role in AI Computing

The country has become a major hub for AI data centers. The nation's inexpensive data services and quickly expanding digital audience have established it as a center for expansion of cloud and artificial intelligence for major tech firms.

"The facility will introduce our cutting-edge technology to companies and individuals in the nation, speeding up AI innovation and stimulating expansion across the country," commented Sundar Pichai, CEO of Alphabet.

Specifics of the Project

A formal agreement to conclude the project will be signed soon, state authorities announced.

"It constitutes a major step forward for the digital progression of our state, progress, and international reputation," remarked the state's technology minister Minister Nara Lokesh.

This initiative will combine computing and artificial intelligence facilities with green energy infrastructure and an expanded fibre-optic network.

The State's Data Hub Strategy

This initiative forms part of the state government's strategy to establish six gigawatts of data centre capacity by 2029.

Computing facilities are actual buildings that contain the computer and network hardware that organizations use to gather, analyze, save, and share information.

They contain computer servers, storage systems and connectivity devices like routers and firewalls, in addition to the required energy and climate management infrastructure to operate them.

Funding Benefits

In Andhra Pradesh, the government has been providing subsidised land and electricity to attract global investors.

Industry Growth

The country's computing facility market has grown rapidly during the last five years, crossing the one gigawatt capacity threshold in the year 2024 and almost increasing threefold its capability from 2019.