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Alphabet, Google's holding company Alphabet will invest $15bn to build an artificial intelligence data center in the southern Indian state of Andhra Pradesh.

This center, that is planned in the port city of the city of Visakhapatnam, will become a component of Google's international system of AI centres spread across 12 countries.

"This represents the biggest AI facility that we are committing funds to across the globe, apart from the US," Google Cloud's chief executive said at an conference in Delhi, the national capital recently, adding that the investment will be allocated throughout the next half-decade.

The revelation occurs when American President Donald Trump has been asking companies from the United States to prioritise local funding.

The Expanding Position of India in Artificial Intelligence Infrastructure

The country has become a major hub for artificial intelligence facilities. The country's inexpensive data services and quickly expanding digital audience have turned it into a center for expansion of cloud and artificial intelligence for technology leaders.

"This center will deliver our industry-leading technology to enterprises and users in India, enhancing artificial intelligence advancement and promoting progress nationwide," said Sundar Pichai, CEO of Alphabet.

Project Details

A definitive arrangement to finalise the venture will be signed soon, the Andhra Pradesh government announced.

"It constitutes a significant advancement for the digital progression of our state, technological innovation, and international reputation," said the minister for technology Nara Lokesh.

This initiative will combine computing and artificial intelligence facilities with renewable energy systems and an broader fiber-optic system.

Andhra Pradesh's Data Center Vision

The project is included in the local administration's plan to create six gigawatts of computing facility capacity by 2029.

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

They contain hosting servers, data storage systems and networking hardware like network routers and security firewalls, in addition to the essential electricity and temperature control systems to operate them.

Funding Benefits

Within the state, the local administration has been providing discounted land and power to entice worldwide funders.

Market Development

India's data centre industry has expanded quickly in the recent half-decade, surpassing the one gigawatt capacity threshold in the year 2024 and almost increasing threefold its capability from 2019.