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Google's parent company Alphabet Inc. plans to commit fifteen billion dollars to establish an artificial intelligence data center in the southern Indian state of Andhra Pradesh.

The facility, that is planned in the port city of Visakhapatnam, is set to become a segment of Google's global network of AI centers distributed over 12 countries.

"This represents the biggest AI facility that we are going to be investing in across the globe, apart from the US," the CEO of Google Cloud announced at an event in capital Delhi on Tuesday, adding that the funding will be spread across the coming five years.

This declaration arrives during a period President Trump of the United States has been encouraging American companies to give priority to domestic investment.

The Expanding Position of India in AI Computing

The nation has become a prime location for artificial intelligence facilities. India's affordable data pricing and quickly expanding online population have turned it into a focal point for AI and cloud growth for major tech firms.

"This center will deliver our industry-leading technology to enterprises and users in India, enhancing AI development and driving growth nationwide," said Sundar Pichai, CEO of Alphabet.

Specifics of the Project

An official contract to conclude the venture is set to be signed on Tuesday, state authorities announced.

"It constitutes a significant advancement for our state's digital future, technological innovation, and worldwide position," said the state's technology minister Nara Lokesh.

The project will combine computing and artificial intelligence facilities with renewable energy systems and an broader fiber-optic system.

Data Infrastructure Plans

The project is included in the local administration's strategy to establish 6 gigawatts of data centre capacity by 2029.

Data centers are tangible infrastructures that accommodate the computing and networking equipment that organizations use to gather, analyze, save, and share information.

These include computer servers, data storage systems and networking hardware like network routers and security firewalls, combined with the required energy and climate management infrastructure to run them.

Investment Incentives

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

Market Development

The country's computing facility market has developed swiftly during the last five years, crossing the 1GW capability milestone in 2024 and almost increasing threefold its 2019 level.