Google's parent company Alphabet will invest $15 billion (£11.29 billion) to build an AI data hub in southern India's Andhra Pradesh state.
The facility, which will be set up in the port city of Visakhapatnam, will be part of Google's global network of AI centres spread across 12 countries.
It's the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States, Thomas Kurian, the CEO of Google Cloud, said at an event in the capital Delhi on Tuesday, adding that the investment will be spread over the next five years.
The announcement comes as US President Donald Trump has been urging American companies to prioritize domestic investment.
India has emerged as a key destination for AI data centres, thanks to its low data costs and rapidly growing internet user base, making it a vital hub for cloud and AI expansion.
Alphabet CEO Sundar Pichai stated that the facility will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.
A formal agreement to finalize the project will be signed soon, as confirmed by the Andhra Pradesh government.
State technology minister Nara Lokesh emphasized that this project represents a significant leap for the state's digital future, innovation, and global standing.
The project will integrate cloud and AI infrastructure with renewable energy systems and an extended fibre-optic network.
Additionally, the Andhra Pradesh government is aiming to develop 6GW of data centre capacity by 2029.
Data centres are crucial infrastructure that enables organizations to collect, process, and store data efficiently.
In pursuit of attracting global investors, the Andhra Pradesh government has been providing subsidized land and electricity.
India's data centre sector has seen substantial growth over the past five years, with capacity levels nearly tripling from 2019, according to JLL's India Data Centre Market Dynamics 2024 report.
