Andhra Pradesh is seeing a rapid expansion of large-scale data-centre projects, with Visakhapatnam emerging as a significant destination for the infrastructure supporting India’s growing AI and cloud economy. The latest development is the state government’s approval of a 512 MW Green Integrated AI Data Centre by AM AI Factory, involving an investment of more than ₹31,387 crore.
What Is Changing?
Andhra Pradesh’s Data Centre Policy 4.0, notified in 2024, targets 200 MW of additional capacity and seeks to attract advanced AI-enabled data centres and large-scale data-centre parks.
Since then, the state has approved several much larger projects. AM AI Factory’s 512 MW AI data centre in Visakhapatnam was approved in August 2026 with an investment of more than ₹31,387 crore. The state has also approved a 486 MW facility by Data Centre Holdings India in Visakhapatnam and a 1,000 MW facility by Renew AP Green Data Centre in Anakapalli district.
Visakhapatnam is also home to Google’s planned AI hub, announced as a roughly $15 billion investment for 2026–2030, with a gigawatt-scale data-centre campus, large-scale energy infrastructure and expanded fibre connectivity. The project broke ground in April 2026, with Google and the government describing the facility as a major addition to India’s AI and digital infrastructure.
Why Does It Matter?
The economic impact of these projects will extend beyond the people employed inside the data centres. The Union government expects Google’s planned Visakhapatnam AI hub to create 5,000–6,000 direct jobs and 20,000–30,000 total jobs in Andhra Pradesh, while generating around ₹10,000 crore in state revenue. The state government has also pointed to wider opportunities in areas such as power electronics, logistics, cooling equipment and other supporting industries. The infrastructure could also strengthen India’s AI and digital capacity. Google says its Visakhapatnam hub is being built to provide the compute, energy and connectivity needed for demanding AI workloads, while supporting businesses and the wider digital economy.
But the expansion comes with costs that are increasingly part of the data-centre debate. Large facilities require substantial power, cooling and water infrastructure, raising questions about their impact on local resources. In Visakhapatnam, environmental groups have raised concerns about water availability and the project’s proximity to the Kambalakonda Wildlife Sanctuary, while Google and the state government have said measures are being taken to reduce water and environmental impacts.
What Happens Next?
The approved projects will now move into construction, alongside the infrastructure needed to support them. The 512 MW AM AI Factory facility is expected to be completed within about two years, while the 1,000 MW Renew AP project has a much longer planned timeline.
The projects will also require supporting infrastructure, including power, water and road connectivity. As India’s data-centre footprint grows, cooling will become increasingly important, with the Union government highlighting technologies such as direct-to-chip liquid cooling, adiabatic cooling and immersion cooling for high-density AI infrastructure.
For Visakhapatnam, connectivity will be another key piece. Google plans to establish an international subsea cable gateway in the city, adding another route to India’s digital backbone alongside existing cable landings in Mumbai and Chennai.
The next phase will therefore involve building the wider ecosystem around these facilities — from reliable power and cooling to connectivity — at the scale needed to support their planned capacity.
What Should India Do?
India’s AI infrastructure strategy will need to balance scale with sustainability. As data centres expand, national and state-level planning should encourage reliable power, efficient cooling and lower water consumption, particularly in regions where resources are already under pressure.
The focus should also extend beyond attracting large facilities. Data-centre investment can help build domestic capabilities in areas such as power equipment, cooling systems, connectivity and skilled talent, strengthening the wider AI ecosystem.
For policymakers and industry, the challenge will be to ensure that India’s AI infrastructure growth delivers computing capacity without creating disproportionate pressure on energy, water and local ecosystems.
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Source Note:
This article is based primarily on the Andhra Pradesh Data Centre Policy 4.0 (2024–29), which outlines the state’s strategy to expand data-centre capacity and attract large-scale, AI-enabled infrastructure. Details on the AM AI Factory, Data Centre Holdings India and Renew AP Green Data Centre projects are drawn from government approvals and reporting by Business Standard and The New Indian Express. Information on Google’s planned Visakhapatnam AI Hub, including its investment, data-centre capacity, connectivity and expected economic impact, is drawn from Google and Government of India releases. Additional context on water, power, cooling and environmental concerns is based on government documents and Reuters reporting.
Editorial Disclosure:
AI-assisted tools were used to help summarise and organise information from the source reports and to support language and copy-editing.