Andhra Pradesh has secured a landmark $7.9 billion data centre investment deal with global tech leader Google and Indian ICT services provider Sify. These agreements will add a combined 1.55 gigawatts (GW) of data processing capacity to the state, according to government sources.
Google is leading this digital surge with a massive $6 billion investment to establish a 1 GW data centre in Visakhapatnam. Out of this, $2 billion will be dedicated to building renewable energy capacity to power the facility. Once completed, this project is expected to be the largest of its kind in Asia, both in terms of capacity and financial scale.
In addition, the Andhra Pradesh cabinet recently gave the green light to a 550 MW data centre project by Sify, with an estimated investment of $1.9 billion. This forms part of a broader effort to attract large-scale tech investments into the state.
These projects are being facilitated under the newly launched IT & Global Capability Centres (GCC) Policy 4.0 (2024–2029). The policy offers a wide range of incentives such as capital subsidies, rental support, and tailored packages for mega projects. It also promotes a hybrid work ecosystem and aims to close critical infrastructure gaps.
Minister for IT, Electronics, and Education Nara Lokesh confirmed that the state has already secured investments for 1.6 GW of data centres. The government now plans to build a total of 6 GW of capacity over the next five years. Lokesh also revealed plans to establish three new submarine cable landing stations in Visakhapatnam, positioning the city as a major digital gateway for India and Southeast Asia.
The emphasis on green energy is central to Andhra Pradesh’s strategy. The government envisions most of the planned 10 GW of power capacity over the next five years to be sourced from renewable solutions, aligning with global sustainability goals.
Beyond infrastructure, these projects are set to generate significant employment opportunities across technology, operations, and support services. The state is also investing in skill development through initiatives like the Future Skills Credit Scheme, ensuring that the workforce is ready for the digital future.
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