🔗 Share this article Alphabet Commits $15bn to Build AI Computing Facility in India The Nation stands as a prime location for data centres due to its low data costs and rapidly growing internet user base. Alphabet, Google's holding company the Alphabet conglomerate is set to invest $15 billion to build an AI data hub in the state of Andhra Pradesh in southern India. This center, which will be set up in the coastal city of Visakhapatnam, will become a segment of Google's global network of AI centres distributed over a dozen nations. "It's the largest AI hub that we plan to invest in across the globe, outside of the US," the CEO of Google Cloud announced at an event in capital Delhi on Tuesday, adding that the investment will be allocated over the next five years. This declaration comes at a time US President Donald Trump has been urging companies from the United States to focus on local funding. India's Growing Role in Artificial Intelligence Infrastructure India has become a key destination for AI data centers. The nation's affordable data pricing and rapidly growing internet user base have established it as a center for AI and cloud growth for technology leaders. "This center will bring our cutting-edge technology to enterprises and users in the nation, accelerating AI innovation and stimulating expansion nationwide," commented Alphabet CEO Sundar Pichai. Project Details An official contract to finalise the project will be signed on Tuesday, the Andhra Pradesh government announced. "This represents a major step forward for our state's digital future, progress, and international reputation," stated the minister for technology Nara Lokesh. The venture will merge computing and artificial intelligence facilities with sustainable power solutions and an enhanced optical fiber network. Andhra Pradesh's Data Center Vision The project is part of the Andhra Pradesh government's strategy to develop 6 gigawatts of data center capability by the year 2029. Data centres are actual buildings that accommodate the computer and network hardware that organizations use to accumulate, handle, retain, and circulate data. These include hosting servers, storage systems and connectivity devices like network routers and security firewalls, in addition to the required energy and climate management infrastructure to run them. Financial Attractions Across Andhra Pradesh, the state authorities has been granting discounted land and electricity to draw international investors. Market Development The nation's data center sector has developed swiftly during the last five years, crossing the one gigawatt capacity threshold in 2024 and almost increasing threefold its 2019 capacity.