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The parent firm of Google Alphabet will invest fifteen billion dollars to build an AI computing facility in southern India's Andhra Pradesh state.

The infrastructure, that is planned in the coastal city of the city of Visakhapatnam, is set to become a part of Google's international system of artificial intelligence hubs located in a dozen nations.

"It stands as the greatest AI hub that we are committing funds to across the globe, outside of the United States," Google Cloud's chief executive announced at an conference in capital Delhi recently, mentioning that the investment will be spread over the next five years.

The revelation comes at a time American President Donald Trump has been encouraging American companies to focus on local funding.

India's Increasing Significance in AI Infrastructure

The country has become a major hub for AI data centres. The nation's inexpensive data services and swiftly increasing internet user base have made it a center for AI and cloud growth for tech giants.

"The infrastructure will introduce our industry-leading technology to businesses and consumers in the country, accelerating artificial intelligence advancement and stimulating expansion throughout the nation," stated Alphabet's chief executive Sundar Pichai.

Project Details

A formal agreement to complete the project is set to be signed this Tuesday, the Andhra Pradesh government confirmed.

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

The venture will integrate computing and artificial intelligence facilities with green energy infrastructure and an enhanced optical fiber network.

Data Infrastructure Plans

The venture forms part of the state government's blueprint to develop 6 gigawatts of data centre capacity by the year 2029.

Computing facilities are actual buildings that house the networking and computing devices that entities use to accumulate, handle, retain, and circulate data.

They contain computer servers, memory systems and networking hardware like routers and firewalls, combined with the necessary power and cooling systems to operate them.

Funding Benefits

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

Industry Growth

The country's computing facility market has grown rapidly over the past five years, exceeding the 1GW capability milestone in 2024 and almost increasing threefold its capability from 2019.