AirTrunk plans $11B data center campuses in Andhra Pradesh
What's the story
AirTrunk, a data center operator backed by Blackstone, has submitted plans for two hyperscale data center campuses in Andhra Pradesh. The proposed project could see an investment of about ₹1.03 lakh crore ($11 billion). With a combined capacity of up to 1.8 gigawatts, the proposal is one of India's largest digital infrastructure projects.
Strategic move
Concerns over state's ability to provide electricity, water
The development comes as Andhra Pradesh looks to establish itself as a key player in the data center and artificial intelligence (AI) infrastructure space.
However, the scale of these investments has raised concerns over the state's ability to provide enough electricity and water for such energy-intensive facilities.
AirTrunk has said its proposed campuses will use low-water, air-cooled technology and industrial water supplies instead of municipal sources.
Infrastructure upgrades
CM assures government working to strengthen infrastructure
Andhra Pradesh Chief Minister N. Chandrababu Naidu has assured that the state government is working to strengthen its energy and water infrastructure to meet the rising demand from major tech investments.
This comes after Alphabet-owned Google announced a $15 billion investment in an AI hub in Andhra Pradesh, which will include a data center and an undersea cable system.
Project scrutiny
Opposition questions if Visakhapatnam has the infrastructure
Opposition parties, including the YSR Congress Party, have questioned if Visakhapatnam has the infrastructure to support such large-scale projects.
The city is already facing water shortages.
In response to these concerns, Naidu said that the government was preparing to meet additional power needs through renewable energy expansion, and strengthening water supplies through river interlinking initiatives and the Polavaram irrigation project.