Synopsis: Andhra Pradesh aims on building 6 GW of data centre capacity, and with the latest RMZ project approval, the state has reached 4.55 GW. Visakhapatnam is turning into one of India’s major AI and data centre destinations and here are few key areas that are set to benefit the most. 

From a port and naval city, Vizag is now shaping up as India’s next big digital hub. And it is estimated that these projects could draw around 9.1 GW of IT load, with total power needs touching nearly 15 GW by 2036-37.

Why are Data Centre and AI Tech Giants choosing Vizag?

Vizag’s coastal location gives it direct access to international subsea cables, a big advantage for global data traffic. That, combined with Andhra Pradesh’s data centre-friendly policies including, a tax holiday till 2047, stamp duty waivers, and single-window clearances and a steady power with available land, is the key reason why so many global tech giants are choosing the city.

AI and Data Centre Hubs in Vizag

Google

Google is setting up its largest AI hub outside the US at Tarluvada village in Vizag, planned as a 1 GW campus with an investment of around $15 billion ( approx. ₹1.25 lakh crore). The project will roll out in phases between 2026 and 2030, include a subsea cable landing station for Google’s international cables, and run on renewable energy, with Airtel as a local partner.

Reliance

Reliance, together with Brookfield and Digital Realty, has announced a 1 GW AI-native data centre cluster spread across 400 acres in Visakhapatnam.

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Sify

Sify Technologies, through its arm Sify Infinit Spaces, is building a data centre and cable landing station on 3.6 acres in the Rushikonda-Madhurawada IT Park, starting with 50 MW capacity. The state has since handed over another 25 acres for phase two, pushing the project toward a 500 MW hyperscale campus, backed by an investment of around ₹15,266 crore.

TCS

TCS has acquired 200 acres of land in Anakapalli district near Vizag to build a data centre, as a part of its HyperVault initiative, adding another major IT name to the city’s growing digital map.

CtrlS

Hyderabad-based CtrlS Datacenters has secured close to 49.93 acres at Rambilli, near Vizag, to set up a 100 MW data centre, expanding its existing network of Tier-4 facilities across India.

RMZ-Colt

RMZ and Colt Data Centre Services have got approval for a joint venture worth about ₹1.77 lakh crore, planned as a 1.25 GW hyperscale campus at Jagannadhapuram and is among the largest single approvals in the state’s data centre push so far. 

Also Read: 5 Upcoming Greenfield Airports in Andhra Pradesh Under the UDAN Scheme That Will Transform Connectivity and Drive Growth

Connectivity

In terms of improving connectivity the infrastructure developments are also taking place with Bhogapuram International Airport coming up at a cost of ₹4,700 to ₹5,000 crore, and a new beach corridor worth ₹2,800 crore that is expected to cut travel time to the airport to around 45 minutes. GVMC and VMRDA have also planned 15 new priority road corridors to ease traffic congestion.

Areas Likely to Benefit

All in all

With mega investments, a new airport, and rising property values all moving together, Vizag is fast becoming Andhra Pradesh’s real economic engine, in the AI and data centre domain.

  • : Author

    Jahnavi is a Finance Content Writer at Trade Brains. She writes on mutual funds, credit cards, personal finance, taxation, equity research, market and business trends with a focus on delivering relevant articles to the viewers. She holds a BSc in Mathematics, Economics and Computer Science and a postgraduate degree in MCA, combining her financial knowledge with technical expertise.