Visakhapatnam / Amaravati, October 2025 — Riding on its recently inked $10 billion agreement with Google to build a 1 GW data centre campus in Visakhapatnam, Andhra Pradesh now has loftier ambitions: to expand its total data centre hosting capability to 6 GW over the next three years.
Scaling Ambition After the Google Push
According to Andhra Pradesh’s IT & Electronics Minister Nara Lokesh, the state already has a 500 MW deal underway with Sify and is in talks with at least four other firms to hit its six-gigawatt target.
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Lokesh dismisses concerns that data centres are power- or water-hungry, estimating that each 1 GW of capacity could generate 200,000 direct and indirect jobs. “AI is here to stay; we must embrace it or risk being left behind,” he said.
Building the “Greater Vishakha Economic Corridor”
The state sees Visakhapatnam as more than just a tech hub — it’s central to its plan for the Greater Vishakha Economic Corridor, stretching from Srikakulam in the north to Anakapalli in the south. The project will be overseen by a dedicated IAS officer, cutting across districts to coordinate infrastructure, power, water, transport, and social planning.
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Lokesh drew a parallel with Hyderabad’s three-decade transformation into an IT capital, stating Andhra aims to replicate that in a decade for its coastal city. He reinforced that Visakhapatnam will become Andhra’s economic capital, housing IT, pharma, steel, medical devices, and more.
Navigating Challenges & Policy Hurdles
Before sealing the Google agreement, officials had to address complex issues around lawful interception, taxation, and data jurisdiction. Lokesh said the state and central government worked through these with the finance and electronics ministries.
On infrastructure, Andhra is moving systematically to meet surging demands for power and water, planning ahead to support the growth it hopes to sustain.