Google Parent Alphabet to Invest $15 Bn in Major AI Data Hub in Southern India
Alphabet, Google’s parent company, has announced plans to invest $15bn (£11.29bn) in building a large-scale artificial intelligence data hub in India’s southern state of Andhra Pradesh.
Alphabet’s Largest AI Project Outside the US
The new facility will be located in the port city of Visakhapatnam and will form part of Google’s global network of AI centres 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,» said Thomas Kurien, CEO of Google Cloud, at an event in Delhi on Tuesday.
He added that the investment would be rolled out over the next five years.
The announcement coincides with US President Donald Trump’s calls for American companies to focus on domestic investments. Yet, India has increasingly become a preferred destination for global tech firms due to its competitive data costs and fast-expanding internet population.
Boosting AI and Cloud Infrastructure
Alphabet CEO Sundar Pichai said the new 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 finalise the project is expected to be signed on Tuesday, according to the Andhra Pradesh government.
Nara Lokesh, the state’s technology minister, described the initiative as «a massive leap for our state’s digital future, innovation, and global standing.»
The project will integrate advanced AI and cloud computing infrastructure with renewable energy systems and a strengthened fibre-optic network.
Expanding India’s Data Centre Capacity
According to Bloomberg, the development is part of Andhra Pradesh’s plan to build up to 6GW of data centre capacity by 2029. Data centres serve as vital facilities that store, process, and distribute digital information through extensive networks of servers and storage systems.
To attract foreign investors, the state government has been offering subsidised land and power. India’s data centre market has expanded rapidly over the past five years, surpassing 1GW of capacity in 2024—nearly three times higher than in 2019, according to JLL’s India Data Centre Market Dynamics 2024 report.
Kursiv also reports that Google celebrated its 27th birthday on September 27 with a nostalgic Doodle featuring its original 1998 logo.
