India to build massive 'data city' to power AI ambitions
What's the story
India is gearing up to build a massive "data city" in Visakhapatnam, Andhra Pradesh. The ambitious project is part of the country's strategy to close the artificial intelligence (AI) gap with the US and China. Andhra Pradesh's IT minister Nara Lokesh said that this digital ecosystem will be instrumental in driving AI growth and attracting global investment.
Strategic move
Google to invest $15 billion in Andhra Pradesh
Lokesh emphasized the importance of embracing the AI revolution, saying, "The AI revolution is here, no second thoughts about it." He said India has committed to this national strategy. The minister also revealed that Andhra Pradesh has secured investment agreements worth $175 billion across 760 projects. This includes Google's $15 billion investment for its largest AI infrastructure hub outside the US and a joint venture by Reliance Industries, Brookfield from Canada, and Digital Realty from the US.
Emerging center
Visakhapatnam being developed as a tech hub
Once known for its cricket stadium, Visakhapatnam is now being developed as a tech hub. The city is being pitched as a landing point for submarine internet cables connecting India to Singapore. Lokesh said the data city will be built in one ecosystem with a 100km radius. He also revealed that Andhra Pradesh had received nearly 25% of all foreign direct investments in India in 2025.
Investment incentives
Lokesh remains optimistic about job creation
Lokesh, a Stanford graduate and son of Andhra Pradesh Chief Minister N. Chandrababu Naidu, is aggressively pursuing companies involved in server production and cooling systems for data centers. He said the state is offering land at one cent per acre for major investors. Despite critics arguing that India lacks high-end computing power or commercial AI deployment, Lokesh remains optimistic about job creation through these industrial developments.
Resource management
Drawing inspiration from China's rapid poverty alleviation efforts
Lokesh said his government has factored in the huge electricity and water requirements of this power-hungry industry. He plans to use "surplus water" flowing into the Bay of Bengal to cool these massive data centers. The minister also drew inspiration from China's ability to lift people out of poverty quickly, saying that India's industrial clusters were something he had learned from them.