Visakhapatnam is quickly becoming one of India’s biggest centers for AI data centers. Large companies like Google, Adani Enterprises, and Reliance Industries have selected the city for major projects.
Reliance Industries plans to invest approximately $17 billion in the development of a 1.5 gigawatt data center cluster near the Bhogapuram airport. The project requires close to 935 acres of land and will be executed in stages. The first stage will include a 500 megawatt data center. If all goes according to the plan, operations may begin by October 2028.
The Reliance project will include its own solar power system, a desalination plant, and a cable landing station. These will help manage power and water needs and also improve overall efficiency.
Google and Adani have already started the groundwork for another massive project in Vizag. The joint venture, AdaniConneX, includes a $15 billion investment to build a 1 gigawatt AI data center. This project will use clean energy and strong global internet connections through undersea cables.
The Andhra Pradesh government plays a key role in attracting these investments. Under the Data Center Policy 4.0, companies now receive strong benefits for industry growth. These include full GST reimbursement on capital goods and support for equipment costs. The state is also offering quicker approvals for large projects.
Vizag’s location gives it another advantage. As a coastal city, it connects easily to global data cable networks. This helps in faster and smoother data flow. The city is also at an optimal distance from major tech centers like Hyderabad and Bengaluru.
Land availability is another reason companies prefer Vizag. The city offers big open spaces for large-scale projects. This makes it easier to build large data center campuses. The new airport and existing port also improve connectivity.
Many other companies have also shown interest. Firms like Sify and Digital Connexion plan to build data centers here. These projects will add more capacity in the coming years. According to reports, Andhra Pradesh aims to reach 6 gigawatts of data center capacity soon.
Vizag is now moving beyond its identity as a port city, laying the foundation for AI and cloud technology in India. With steady investments and government support, the city is set for faster growth in the coming years.
Also Read: NVIDIA Joins Nscale’s $2B Round as AI Data center Demand Grows