Naidu aims to turn Visakhapatnam into a data centre hub
Andhra Pradesh seeks to build a 6.5 GW ecosystem following a $15 billion Google AI project.
Andhra Pradesh Chief Minister N. Chandrababu Naidu is working to establish Visakhapatnam as a major hub for hyperscale data centres, according to a report by India Today. The initiative includes a $15 billion artificial intelligence and cloud infrastructure project by Google subsidiary Raiden Infotech, in partnership with AdaniConnex and Airtel’s Nxtra, which is expected by September 2028.
The state government has also provided 855 acres at Bhogapuram in Vizianagaram district to Reliance Industries for a 1.5 GW data centre. Other planned projects include a 500 MW facility being developed by Sify in partnership with Meta.
Information Technology Minister Nara Lokesh stated that the government intends to develop a data centre ecosystem with a 6.5 GW capacity near Visakhapatnam. To attract these firms, the state is offering incentives including capital subsidies, stamp duty exemptions, and subsidies on power and water tariffs. Government estimates suggest incentives for the Google project could exceed Rs 22,000 crore.
While Naidu described the city as a future talent destination, critics have raised concerns. The YSR Congress Party has questioned employment claims, with former industries minister Gudivada Amarnath suggesting the Google project might only create around 200 direct jobs. An official involved in negotiations told India Today that direct employment at the Google or Reliance facilities might not exceed 1,000.
Environmental groups have also warned that these facilities, which require significant electricity and water, could strain local natural resources and ecosystems.