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The parent firm of Google the Alphabet conglomerate plans to commit $15 billion to establish an AI computing facility in the southern Indian state of Andhra Pradesh.

The facility, which will be set up in the harbor town of the city of Visakhapatnam, is set to become a part of Google's international system of artificial intelligence hubs located in 12 countries.

"This represents the biggest AI hub that we are going to be investing in across the globe, outside of the United States," the CEO of Google Cloud announced at an gathering in Delhi, the national capital on Tuesday, noting that the funding is to be distributed throughout the next half-decade.

This declaration occurs when American President Donald Trump has been encouraging US firms to give priority to local funding.

India's Increasing Significance in AI Infrastructure

India has emerged as a key destination for AI data centres. India's affordable data pricing and rapidly growing online population have made it a focal point for expansion of cloud and artificial intelligence for technology leaders.

"The infrastructure will deliver our cutting-edge technology to businesses and consumers in the country, accelerating artificial intelligence advancement and driving growth throughout the nation," commented Alphabet CEO Sundar Pichai.

Specifics of the Project

A formal agreement to finalise the project is scheduled for signing this Tuesday, the Andhra Pradesh government said.

"This represents a massive leap for our state's digital future, innovation, and international reputation," stated the minister for technology Nara Lokesh.

The venture will combine AI and cloud systems with green energy infrastructure and an expanded fibre-optic network.

Data Infrastructure Plans

The venture forms part of the state government's strategy to create 6GW of data center capability by 2029.

Data centers are physical facilities that contain the networking and computing devices that organizations use to collect, process, store, and distribute data.

These include computer servers, memory systems and networking hardware like firewalls and routers, in addition to the essential electricity and temperature control systems to run them.

Funding Benefits

In Andhra Pradesh, the local administration has been offering reduced-cost property and electricity to entice worldwide funders.

Market Development

The country's computing facility market has grown rapidly in the recent half-decade, surpassing the one gigawatt capacity threshold in the year 2024 and approximately tripling its capability from 2019.