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The parent firm of Google Alphabet will invest $15bn for constructing an artificial intelligence data center in the state of Andhra Pradesh in southern India.

The infrastructure, that is planned in the coastal city of the city of Visakhapatnam, is set to become a part of the worldwide network of Google of AI centers distributed over a dozen nations.

"It stands as the greatest AI facility that we are going to be investing in anywhere in the world, apart from the United States of America," Google Cloud's chief executive announced at an gathering in capital Delhi this Tuesday, adding that the investment will be spread throughout the next half-decade.

The revelation comes at a time US President Donald Trump has been urging American companies to give priority to local funding.

The Expanding Position of India in Artificial Intelligence Infrastructure

The country has become a key destination for artificial intelligence facilities. India's inexpensive data services and swiftly increasing online population have turned it into a hub for expansion of cloud and artificial intelligence for technology leaders.

"This center will deliver our cutting-edge technology to businesses and consumers in India, speeding up AI development and driving growth nationwide," said Alphabet CEO Sundar Pichai.

Initiative Particulars

A definitive arrangement to finalise the venture is set to be signed soon, state authorities confirmed.

"It constitutes a significant advancement for our state's technological advancement, progress, and worldwide position," stated the technology official Minister Nara Lokesh.

The venture will combine 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 plan to establish six gigawatts of data center capability by 2029.

Data centers are physical facilities that contain the computing and networking equipment that entities 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 essential electricity and temperature control systems to run them.

Financial Attractions

In Andhra Pradesh, the state authorities has been granting subsidised land and electricity to entice international investors.

Industry Growth

The nation's data center sector has grown rapidly in the recent half-decade, surpassing the 1GW capacity mark in the year 2024 and nearly tripling its 2019 level.