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Google's parent company Alphabet Inc. plans to commit fifteen billion dollars for constructing an AI computing facility in the southern Indian state of Andhra Pradesh.

The facility, to be established in the port city of Visakhapatnam city, is set to become a segment of the worldwide network of Google of AI centres distributed over 12 countries.

"It stands as the greatest AI hub that we are committing funds to worldwide, apart from the United States of America," Thomas Kurien stated at an conference in Delhi, the national capital recently, noting that the investment will be allocated over the next five years.

This declaration occurs when President Trump of the United States has been encouraging US firms to focus on investments within the country.

India's Growing Role in AI Computing

The nation has become a key destination for AI data centres. India's affordable data pricing and quickly expanding online population have turned it into a hub for cloud and AI expansion for major tech firms.

"This center will bring our pioneering tech solutions to enterprises and users in the country, enhancing AI innovation and promoting progress throughout the nation," said Alphabet CEO Sundar Pichai.

Specifics of the Project

An official contract to complete the venture is set to be signed soon, local government officials said.

"It is a massive leap for our state's digital future, technological innovation, and worldwide position," remarked the technology official Nara Lokesh.

This initiative will combine computing and artificial intelligence facilities with sustainable power solutions and an enhanced optical fiber network.

Andhra Pradesh's Data Center Vision

This initiative is part of the Andhra Pradesh government's plan to develop 6GW of computing facility capacity by the year 2029.

Data centres are actual buildings that accommodate the computing and networking equipment that companies use to accumulate, handle, retain, and circulate data.

They contain computer servers, data storage systems and network equipment like firewalls and routers, along with the necessary power and cooling systems to run them.

Funding Benefits

In Andhra Pradesh, the state authorities has been providing reduced-cost property and electricity to draw international investors.

Market Development

The country's computing facility market has expanded quickly during the last five years, exceeding the 1GW capacity mark in 2024 and approximately tripling its 2019 capacity.