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Google announced plans to invest $15 billion over five years to build a massive AI data centre in Andhra Pradesh, marking its largest-ever investment in India. The facility, located in Visakhapatnam, will serve as Google’s biggest AI hub outside the United States and will have an initial 1-gigawatt capacity, according to Google Cloud CEO Thomas Kurian.

The initiative comes as relations between Washington and New Delhi face strain over tariffs and stalled trade talks. While Prime Minister Narendra Modi has urged the boycott of some foreign goods, Indian ministers joined Google executives at the launch event, emphasizing the project’s potential to advance India’s AI and digital infrastructure.

Google’s statement highlighted the move as a driver of “economic and societal opportunity” for both nations. The company is partnering with Adani Group and Airtel to develop the infrastructure, including a new international subsea gateway, which state officials estimate will create over 188,000 jobs.

The tech giant joins Microsoft and Amazon, who have also made multi-billion-dollar data centre investments in India, a market with nearly a billion internet users. Analysts say the demand for AI computing power is reshaping India’s technology landscape as global firms race to expand capacity.

Google parent Alphabet Inc. views India as a vital growth market, where Android and YouTube dominate, though it continues to face antitrust scrutiny and legal challenges over its AI policies.