The Andhra Pradesh government has approved a Rs 31,387 crore green integrated artificial intelligence data centre in Visakhapatnam, adding another large-scale digital infrastructure project to the state's growing AI and data centre pipeline.
The 512 MW facility will be developed by AM AI Factory (Vizag) Pvt Ltd at Amanam village in Bheemunipatnam mandal. The project is expected to generate employment for up to 1,000 people and is required to be completed within two years and four months, according to the government order approving the investment.
The state government will extend both fiscal and non-fiscal incentives to support the development. Non-fiscal support will include power infrastructure and water supply facilities, while fiscal incentives will include exemptions from stamp duty and electricity duty.
The project comes as Andhra Pradesh seeks to build Visakhapatnam and the surrounding region into a destination for large-scale data centre and AI infrastructure investments. The state is targeting an overall data centre capacity of 6 GW, with several projects currently proposed or under development.
Earlier in August, the State Investment Promotion Board approved 25 investment proposals worth around Rs 2.08 lakh crore across sectors. Among the projects was ReNew AP Green Data Centre's proposed 1,000 MW hyperscale and colocation facility in Anakapalli district, involving an investment of Rs 85,200 crore. The facility is expected to create about 1,880 jobs.
Visakhapatnam has also attracted other data centre investments. Sify Infinit Spaces is developing a proposed 500 MW data centre project in the city with an investment of Rs 15,266 crore. The Andhra Pradesh government recently approved an additional 25 acres for the second phase of that development.
CtrlS Datacenters has separately received approval for land to establish a 100 MW data centre in Anakapalli district, further expanding the region's pipeline of digital infrastructure projects.
The investments come amid rising demand for computing capacity driven by cloud services, generative AI and increasingly resource-intensive AI workloads. Unlike conventional computing environments, large AI deployments require substantial processing capacity as well as supporting power, cooling and network infrastructure.
India's data centre market is expected to expand as businesses increase their adoption of cloud and AI services. The International Finance Corporation has said rising cloud adoption, AI workloads, digital services and 5G connectivity could drive a four-to-six-fold expansion of India's data centre market by 2030.
The approval of the 512 MW facility adds to this infrastructure buildout, while also placing power availability, sustainability and supporting infrastructure at the centre of Andhra Pradesh's efforts to attract AI-related investments.
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