Technology – Visakhapatnam Set to Gain Momentum with New AI Data Centre Project
Technology – Visakhapatnam is poised to witness a significant boost in its technology landscape as preparations move forward for the establishment of a major AI data centre. The project, expected to take shape soon, is being seen as a key step toward strengthening the digital and industrial ecosystem in the northern coastal region of Andhra Pradesh.

Government Push to Attract Investments
State BJP president and former MLC PVN Madhav, in a statement issued ahead of the project’s groundbreaking ceremony, highlighted the role of coordinated efforts between the State and Central governments in bringing large-scale investments to the region. He pointed out that the administration, under Chief Minister Nara Chandrababu Naidu and with backing from the NDA government led by Prime Minister Narendra Modi, has been actively promoting policies aimed at improving the investment climate.
According to him, these initiatives have made Andhra Pradesh an increasingly attractive destination for technology-driven projects. The upcoming AI data centre is being viewed as a notable addition to the state’s growing infrastructure network.
Focus on Ease and Speed of Business
Madhav emphasized that the government’s focus on simplifying processes and accelerating approvals has played a crucial role in drawing investor interest. He referred to this approach as enhancing the “speed of doing business,” which has helped reduce delays and encouraged companies to commit to large-scale ventures.
This streamlined environment is expected to continue attracting both domestic and international firms, particularly in sectors linked to digital services and data management.
Strategic Location and Expanding Tech Ecosystem
Visakhapatnam’s strategic coastal location is another factor contributing to its growing importance in the technology sector. Madhav noted that the city is likely to see a rise in tech-related activities as infrastructure improves. Plans to establish a subsea cable landing station along the coastline are expected to further strengthen global connectivity, making the region more suitable for data-intensive operations.
Such developments could position Visakhapatnam as a key hub for digital infrastructure in eastern India, complementing similar initiatives in other major cities.
Scale and Investment Details of the Project
The proposed AI data centre is planned to be developed across approximately 600 acres, covering areas such as Tarluvada, Adavivaram, and Rambilli. The project is expected to involve an investment of around Rs 1.35 lakh crore and is designed to support a capacity of about 1,000 MW.
In addition to this, another significant proposal involving a 550 MW data centre is under consideration, with participation from major technology and infrastructure players. These projects collectively indicate a growing interest in building large-scale digital facilities in the region.
Potential for Employment and Economic Growth
The expansion of data centre infrastructure along the Andhra Pradesh coast is expected to create new employment opportunities, both directly and indirectly. From construction and maintenance to IT services and support roles, the projects are likely to generate a wide range of jobs.
Madhav also mentioned that several companies, including AdaniConneX and Airtel Nxtra, are associated with ongoing and proposed initiatives. Their involvement is expected to bring technical expertise and further investment into the region.
As these developments unfold, improved digital infrastructure could contribute to broader economic growth, supporting industries beyond the technology sector and enhancing the region’s overall competitiveness.