Andhra’s emerging tech capital: IT giants queue up for Vizag

Once known as the industrial powerhouse of the undivided Andhra Pradesh, Visakhapatnam is now on course to become the state’s new nerve centre for information technology and innovation.

The coastal city, which already houses major steel and power industries, is witnessing a surge in IT investments spearheaded by tech giant Google’s ambitious plan to set up a massive AI hub with an investment of ₹88,000 crore. The agreement between Google and the state government has put Visakhapatnam on the national technology map, with officials projecting it as India’s next big artificial intelligence destination.

According to government sources, Visakhapatnam alone has attracted nearly ₹6.5 lakh crore worth of investments in the last 16 months of the coalition government’s tenure. Chief Minister N. Chandrababu Naidu and IT Minister Nara Lokesh are being credited with driving the state’s renewed focus on technology, infrastructure, and digital expansion.

Alongside Google, several leading IT and data centre companies have announced investments in and around the city. These include TCS (₹1,370 crore), Cognizant (₹1,583 crore), Accenture (₹1,200 crore), ANSR (₹1,000 crore), Sattva Developers (₹1,500 crore), Phenom (₹207 crore), and People Ursa (₹5,278 crore). Officials say that as these projects materialise, Visakhapatnam could soon transform into a second “Hi-Tech City” on the lines of Hyderabad.

From IT to industry: A multi-sector growth story

Beyond IT, Visakhapatnam is also evolving as a hub for steel and power sectors. The region already hosts the government-owned Visakhapatnam Steel Plant and the ArcelorMittal Nippon Steel facility at Rajayyapeta, where an investment of ₹1.17 lakh crore has been earmarked for new steel and port infrastructure.

In the energy sector, major players like NTPC and Hinduja are expanding operations, while NTPC is preparing to invest ₹1.85 lakh crore in green hydrogen production at Pudimadaka near Visakhapatnam. Although some proposed pumped hydro projects in the tribal hinterlands have been delayed due to local opposition, government officials claim the district has still secured overall investments worth ₹6.5 lakh crore.

Meanwhile, infrastructure projects such as the Rambilli nuclear submarine base, Bhogapuram International Airport, Mulapeta Port, GMR University, and the upcoming Pharma Park are progressing rapidly. To complement industrial and tourism growth, the government is also developing new roads, flyovers, a coastal corridor, a metro network, and improved railway connectivity under a comprehensive master plan.

Why Vizag is the new magnet for tech

Experts attribute Visakhapatnam’s rise to a combination of policy reforms and natural advantages. Following the Centre’s new data localisation regulations which require companies to store Indian users’ data within the country, global tech firms are seeking suitable locations to build data centres.

Visakhapatnam has emerged as a top choice due to affordable land, stable electricity and water supply, access to renewable energy sources, and the availability of skilled human resources. The city’s proximity to the sea also enables the laying of high-speed submarine internet cables connecting India with Singapore and the United States, further strengthening its digital backbone.

Additionally, companies can produce their own solar and wind energy within the state and channel it through the grid at lower costs, a key factor in the operational economics of large-scale data centres.

With such strategic advantages and government support, industry analysts believe that Visakhapatnam is poised to become the next major tech destination on India’s eastern coast, a city where heavy industry and cutting-edge technology will grow side by side.