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

This center, which will be set up in the port city of the city of Visakhapatnam, is set to become a segment of Google's global network of artificial intelligence hubs spread across a dozen nations.

"It's the largest AI facility that we are committing funds to anywhere in the world, outside of the United States," Thomas Kurien said at an event in the capital city of Delhi recently, adding that the investment is to be distributed throughout the next half-decade.

The revelation comes at a time US President Donald Trump has been encouraging US firms to focus on investments within the country.

The Expanding Position of India in AI Infrastructure

India has become a key destination for artificial intelligence facilities. India's low data costs and quickly expanding internet user base have turned it into a focal point for expansion of cloud and artificial intelligence for technology leaders.

"The facility will bring our industry-leading technology to businesses and consumers in the country, accelerating AI innovation and promoting progress across the country," said Alphabet's chief executive Sundar Pichai.

Project Details

A definitive arrangement to finalise the project is scheduled for signing soon, local government officials said.

"It constitutes a significant advancement for the digital progression of our state, innovation, and worldwide position," stated the technology official Nara Lokesh, the technology minister.

The project will merge AI and cloud systems with green energy infrastructure and an enhanced optical fiber network.

The State's Data Hub Strategy

This initiative forms part of the Andhra Pradesh government's strategy to develop 6GW of data centre capacity by 2029.

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

They contain servers, data storage systems and networking hardware like firewalls and routers, in addition to the necessary power and cooling systems to run them.

Investment Incentives

In Andhra Pradesh, the government has been granting reduced-cost property and energy to entice worldwide funders.

Industry Growth

The country's computing facility market has expanded quickly over the past five years, surpassing the one gigawatt capacity threshold in 2024 and approximately tripling its 2019 capacity.