Google to Invest $15bn for Constructing AI Data Hub in India

Google's parent company Alphabet is set to invest $15 billion for constructing an AI data hub in the state of Andhra Pradesh in southern India.

The infrastructure, that is planned in the coastal city of Visakhapatnam, is set to become a segment of Google's international system of AI centers spread across 12 countries.

"It's the largest artificial intelligence center that we are going to be investing in worldwide, excluding the United States," Google Cloud's chief executive announced at an event in the capital city of Delhi on Tuesday, mentioning that the funding is to be distributed across the coming five years.

This declaration arrives during a period President Trump of the United States has been asking US firms to give priority to domestic investment.

The Expanding Position of India in AI Infrastructure

The nation has become a major hub for AI data centres. The country's low data costs and swiftly increasing digital audience have made it a hub for AI and cloud growth for major tech firms.

"This center will introduce our industry-leading technology to companies and individuals in the nation, accelerating artificial intelligence advancement and stimulating expansion throughout the nation," stated Alphabet CEO Sundar Pichai.

Project Details

A formal agreement to conclude the project is set to be signed soon, local government officials announced.

"This represents a major step forward for the digital progression of our state, progress, and global standing," remarked the technology official Minister Nara Lokesh.

This initiative will merge cloud and AI infrastructure with renewable energy systems and an expanded fibre-optic network.

The State's Data Hub Strategy

The project is part of the state government's blueprint to create 6GW of data center capability by 2029.

Data centers are tangible infrastructures that contain the networking and computing devices that companies use to accumulate, handle, retain, and circulate data.

These include computer servers, memory systems and connectivity devices like firewalls and routers, along with the necessary power and cooling systems to function properly.

Investment Incentives

In Andhra Pradesh, the government has been providing reduced-cost property and energy to attract international investors.

Industry Growth

The country's computing facility market has grown rapidly during the last five years, surpassing the one gigawatt capacity threshold in the year 2024 and nearly tripling its 2019 capacity.