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Alphabet, Google's holding company Alphabet plans to commit $15 billion to establish an AI computing facility in the state of Andhra Pradesh in southern India.

The facility, which will be set up in the harbor town of Visakhapatnam city, is going to be a segment of Google's global network of AI centres distributed over 12 countries.

"It stands as the greatest AI hub that we are going to be investing in worldwide, outside of the US," Thomas Kurien stated at an event in capital Delhi recently, noting that the financial commitment will be allocated throughout the next half-decade.

The revelation occurs when President Trump of the United States has been asking US firms to focus on local funding.

India's Growing Role in AI Computing

The country has risen as a prime location for AI data centers. The country's inexpensive data services and quickly expanding digital audience have established it as a hub for AI and cloud growth for major tech firms.

"The facility will deliver our industry-leading technology to companies and individuals in the country, speeding up AI development and driving growth nationwide," commented Sundar Pichai, CEO of Alphabet.

Initiative Particulars

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

"This represents a major step forward for the digital progression of our state, progress, and worldwide position," said the technology official Nara Lokesh.

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

The State's Data Hub Strategy

The project forms part of the local administration's blueprint to establish 6 gigawatts of data center capability by 2029.

Data centres are physical facilities that house the computing and networking equipment that organizations use to gather, analyze, save, and share information.

These include servers, memory systems and network equipment like network routers and security firewalls, combined with the necessary power and cooling systems to run them.

Financial Attractions

Across Andhra Pradesh, the government has been granting discounted land and energy to entice international investors.

Industry Growth

India's data centre industry has grown rapidly during the last five years, exceeding the 1GW capability milestone in the year 2024 and approximately tripling its 2019 capacity.