NEW DELHI: Google’s parent company Alphabet will invest $15 billion (£11.29 billion) to establish a major AI data hub in Visakhapatnam, Andhra Pradesh, part of its global network of AI centres spanning 12 countries.

Google Cloud CEO Thomas Kurien described it as “the largest AI hub outside the United States,” noting the investment will be implemented over the next five years.

The announcement comes amid calls from US President Donald Trump for American companies to prioritize domestic investment.

India has become a key destination for AI data centres due to its low data costs and rapidly growing internet user base, attracting major tech giants to expand cloud and AI infrastructure.

Alphabet CEO Sundar Pichai said the hub “will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth nationwide.”

A formal agreement to finalize the project will be signed on Tuesday, according to the Andhra Pradesh government. State Technology Minister Nara Lokesh called the project “a massive leap for our state’s digital future, innovation, and global standing.”

The facility will integrate cloud and AI infrastructure with renewable energy systems and an expanded fibre-optic network. The hub is part of Andhra Pradesh’s plan to develop 6GW of data centre capacity by 2029.

Data centres house the computing and networking equipment used to collect, process, store, and distribute data, including servers, storage systems, routers, and firewalls, along with essential power and cooling systems.

The state government has been offering subsidized land and electricity to attract global investors. India’s data centre industry has tripled since 2019, surpassing 1GW capacity in 2024, according to JLL’s India Data Centre Market Dynamics 2024 report.