Andhra Pradesh is aggressively pursuing the development of data centers, aiming for a total capacity of 6GW in the next five years, with a significant boost coming from Google's near $10 billion (₹80,000 crore) investment in Visakhapatnam. This positions Vizag, also known as Visakhapatnam, as a key player on the global tech map, particularly in the realm of AI and cloud computing.
The state government is scheduled to sign an agreement with Google on Tuesday to develop a 1-gigawatt (GW) hyperscale data center campus in Visakhapatnam, which will anchor "AI City Vizag". This project is one of Google's largest in Asia and will deploy its full AI stack to accelerate AI-driven transformation across India. The new AI hub will combine powerful AI infrastructure, data center capacity, large-scale energy sources, and an expanded fibre-optic network. This integrated development is intended to establish Vizag and Andhra Pradesh as a strategic center for driving India's AI transformation. The facility will connect to Google's global network through resilient subsea and terrestrial systems and be designed with clean-energy integration.
Andhra Pradesh's IT Minister, Nara Lokesh, has emphasized the transformative nature of the Google project, stating it will be a crucial step in making "AI City Vizag India's digital powerhouse". The State Investment Promotion Board, chaired by Chief Minister N. Chandrababu Naidu, has already approved the project. The project will be facilitated through single-window clearances, reliable utilities, renewable energy integration, and plug-and-play infrastructure led by the Economic Development Board and the Department of ITE&C.
The Google data center cluster will span three campuses across Visakhapatnam and Anakapalli districts: Tarluvada, Adavivaram and Rambilli. These facilities are slated to be operational by July 2028. The project is expected to contribute approximately ₹10,518 crore annually to the Gross State Domestic Product (GSDP) during 2028–2032 and support around 1,88,220 direct and indirect jobs each year across construction, operations, engineering, IT, and supply chain sectors. Furthermore, Google Cloud's productivity effects are forecast to generate an additional ₹9,553 crore per year through digital enablement, totaling ₹47,720 crore over five years.
To support the power demands of these data centers, Andhra Pradesh is working on upgrading its energy infrastructure, with expected power generation capacity requirements potentially reaching 10GW over the next five years. While some of this capacity may be coal-fired, the emphasis will be on green energy. The Google data center in Visakhapatnam will also include $2 billion worth of renewable energy capacity to power the facility.
Visakhapatnam is emerging as a major hub for data storage and technology on India's east coast. The state government has approved an investment of ₹87,520 crore by Google's subsidiary, Raiden Infotech, to construct the 1 GW data center cluster. The development is expected to attract further investments and generate numerous jobs.
The Andhra Pradesh government aims to build 6 GW of data centers over the next five years. The initial 1.6 GW of agreed data centers are expected to be operational within the next 24 months. The state is also working to establish three new cable landing stations in Visakhapatnam to enhance digital infrastructure.
The establishment of the data center clusters requires significant resources, including a substantial power supply (at least 2500MW per day), millions of gallons of water for cooling, and high-capacity submarine cables and fiber lines.
Other significant developments in Andhra Pradesh's data center landscape include Adani Group's 'Integrated Data Center and Technology Business Park' in Vizag and Sify Technologies' plans to build a 550-MW data center in the state.
