New Delhi, Oct. 13 -- Visakhapatnam or Vizag is fast transforming into India's next major technology and data centre hub, with large-scale investments from Google and Sify Technologies signalling a new phase of AI-led digital infrastructure growth in Andhra Pradesh.
On Tuesday, the state government is set to sign an agreement with Google to develop a 1-gigawatt hyperscale data centre campus in Visakhapatnam - a project valued at nearly $10 billion (Rs.80,000 crore). The initiative will serve as the anchor for "AI City Vizag," a landmark development that integrates AI infrastructure, cloud computing, clean energy, and subsea connectivity to accelerate India's digital transformation.
The proposed AI hub will be among Google's largest projects in Asia, deploying its full AI technology stack to drive innovation and productivity across sectors. The facility will connect to Google's global network through robust subsea and terrestrial systems and will feature renewable energy integration to ensure sustainable operations.
According to government projections, the project could contribute an average of Rs.10,518 crore annually to Andhra Pradesh's GSDP between 2028 and 2032, while creating over 1.88 lakh jobs per year. Additionally, Google Cloud-enabled productivity spill overs are expected to generate Rs.47,720 crore over five years.
In a parallel development, Sify Technologies has commenced work on a Rs.1,500-crore AI Edge Data Center and Open Cable Landing Station (CLS) in Visakhapatnam. Andhra Pradesh IT Minister Nara Lokesh laid the foundation stone for the 50-megawatt facility on Sunday. Built on 3.6 acres of government-allotted land, the project aims to enhance edge-level AI computing capacity, strengthen subsea connectivity, and facilitate data exchange between India and Southeast Asian nations such as Singapore, Malaysia, Australia, and Thailand. Lokesh also noted that it is expected to generate over 1,000 jobs and catalyse local innovation.
Last week, it was announced that Vizag will be one of the landing sites for Meta's multi-billion-dollar undersea cable project, called Waterworth. This project, spanning 50,000 km, will connect India with the US, Brazil and South Africa. The cable is expected to land in 2030 and will bring massive data capacity to India. Along with Mumbai, Vizag has been chosen as a key location, proving its rising importance in global connectivity that supports the W-style geographical pattern of India.
Furthermore, the city also received another big boost as Tata Consultancy Services (TCS) is planning to set up a 1 Gigawatt Data Center in Visakhapatnam. Officials said these developments position Visakhapatnam as "India's next global digital gateway," combining hyperscale capacity and edge AI infrastructure to support the country's expanding digital economy. The state government's focus on integrated tech ecosystems and clean-energy-powered data centres is expected to further strengthen Andhra Pradesh's standing in India's technology growth map.
Published by HT Digital Content Services with permission from TechCircle.