Google's parent company Alphabet will invest $15bn (£11.29bn) 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,' said Thomas Kurian, CEO of Google Cloud. This decision comes as US President Donald Trump encourages American firms to focus on domestic investments.

India is gaining traction as a prime location for AI data centres due to low data costs and a soaring number of internet users. Alphabet CEO Sundar Pichai emphasized that this hub will enhance AI technology access and spur innovation across India. The formal signing of the project agreement is set for Tuesday, according to Andhra Pradesh officials.

The project aims to merge cloud and AI technologies with sustainable energy solutions while expanding fiber-optic networks. As part of a broader strategy, the Andhra Pradesh government plans to establish 6GW of data center capacity by 2029, supporting India's rapid growth in the tech industry.

Data centres are essential infrastructures that accommodate the servers and equipment businesses use to manage data. To attract international investors, the state is offering subsidized land and energy resources.