Google announced on Tuesday that it will invest $15 billion over the next five years to establish an artificial intelligence data center in Andhra Pradesh, marking its largest investment in India. The plan comes amid ongoing trade tensions between India and the U.S., as Prime Minister Narendra Modi pushes for reduced reliance on foreign products. The announcement was made at an event in New Delhi attended by Indian ministers, where Google Cloud CEO Thomas Kurian said the Andhra Pradesh facility will be Google’s largest AI hub outside the U.S., aimed at advancing India’s AI mission.

This investment is part of Google’s broader $85 billion global expansion in data center infrastructure to meet the growing demand for AI services. The new campus, located in Visakhapatnam, will start with a capacity of 1 gigawatt. Despite rising anti-American sentiment in India over U.S. tariffs on Indian goods, Google emphasized that the project will bring significant economic and social benefits to both countries. Indian officials have been meeting with U.S. company executives to assure them of a supportive business climate.

Tech giants like Microsoft and Amazon have already made major data center investments in India, where nearly a billion people use the internet. Local industrialists Gautam Adani and Mukesh Ambani are also expanding into the data center sector. Google’s project, developed in partnership with Adani Group and Airtel, includes plans for a new international subsea cable gateway. The facility is expected to create around 188,000 jobs. India remains a key market for Google’s parent company, Alphabet, with YouTube and Android leading in user numbers. However, the company continues to face regulatory scrutiny and legal challenges in the country.