Vizag’s digital leap: How the coastal city is becoming India’s new data centre hub

Every photo uploaded to social media, every online payment, every movie streamed on OTT platforms all of it is stored, processed, and managed somewhere. That “somewhere” is a data centre, a massive facility filled with powerful computers, networking systems, and cooling equipment that keeps the digital world alive.

In simple terms, a data centre is the backbone of the internet. It stores digital information for companies, governments, and individuals. Modern data centres host cloud computing services, Artificial Intelligence (AI) models, and even cryptocurrency transactions.

Data centres across the world

Countries like the United States, Singapore, Ireland, and the Netherlands are global leaders in hosting data centres. Their advantages include reliable power supply, advanced fibre connectivity, political stability, and a strong IT ecosystem. In recent years, emerging economies including India, Indonesia, and Malaysia have also entered the race, as global tech companies look for new growth markets and affordable power.

India’s Growing Data Centre Map

India’s digital economy has been growing rapidly. As per recent studies, the country’s data consumption is among the highest in the world driven by affordable smartphones, e-governance, and streaming services.

Major data centre hubs in India include:

Why Vizag?

Visakhapatnam, often called the City of Destiny , has quietly emerged as a promising destination for large-scale digital infrastructure.

Here’s why companies are looking to Vizag:

• Coastal Advantage: Proximity to the sea allows international submarine internet cables to land directly, reducing data travel time and costs.

• Energy Availability: Andhra Pradesh has a surplus of renewable energy , particularly from solar and wind farms, which is crucial for sustainable data operations.

• Strategic Location: Located midway along India’s east coast, Vizag can serve both northern and southern regions efficiently.

• Stable Land and Governance: The Andhra Pradesh government offers clear land policies and incentives through its State Investment Promotion Board (SIPB) .

• Disaster Safety: Unlike Chennai or Mumbai, Vizag’s coastal line is less cyclone-prone in recent years and has higher elevation points suitable for data parks.

The Three Major Projects in Vizag

1️. Raiden Infotech (Google) – Mega Cluster Across Vizag Region

• Investor: Raiden Infotech India, a Google subsidiary

• Total Investment: ₹87,520 crore

• Capacity: Around 1,000 MW across three campuses – Adavivaram, Tarluvada (Anandapuram), and Rambilli

• Timeline:

• Proposal cleared by SIPB in October 2025

• Construction expected to begin by March 2026

• Operations likely by mid-2028

• Special Features:

• Advanced AI-ready infrastructure

• Low-water “closed loop” cooling systems

• Fully powered by renewable energy

• Challenges: Legal hurdles in land acquisition near Tarluvada

2️. Sify Infinite spaces – AI edge data centre & cable landing station

• Investor: Sify Technologies

• Investment: ₹1,500 crore

• Capacity: 50 MW

• Location: Vizag coast (Beach Road area)

• Timeline:

• Foundation stone laid by IT Minister Nara Lokesh on October 12, 2025

• Operational by late 2027

• Highlights:

• The first Cable Landing Station (CLS) in Andhra Pradesh

• Edge computing setup for AI applications and 5G networks

• Partnership with subsea cable operators to enhance connectivity

• Employment: Around 600 direct jobs in early phase, expected to grow with expansion

3️. Adani ConneX – Integrated Data Centre & Technology Business Park

• Investor: Adani Group & EdgeConneX (joint venture)

• Investment: Around ₹20,000 crore

• Capacity: 250 MW (Phase 1)

• Location: Madhurawada, Visakhapatnam

• Timeline:

• Groundbreaking in May 2023

• Environmental clearance received January 2025

• Expected to go live in 2027

• Highlights:

• India’s first integrated data centre and tech park model

• Will host IT companies, startups, and R&D labs

• Fully renewable-energy powered campus

Power and Water - The Invisible lifelines

Running a data centre is like running a small city. They consume enormous electricity and require water for cooling servers.

Estimated Annual Resource Requirements (Vizag Projects)

Note: Water demand can drop by 70–90% if low-evaporation or closed-loop cooling is used.

Electricity equivalent: Combined, these Vizag projects may draw over 11,000 GWh per year — roughly the same as the annual electricity consumption of a medium-sized Indian district.

Job Creation: From Engineers to Drivers

Large-scale data parks generate a wide variety of jobs — from high-skilled IT engineers to construction workers and logistics providers.

Economic ripple effects

The Andhra Pradesh government estimates that these projects could attract over ₹1 lakh crore in total investments in the next five years. Vizag is now being positioned as “India’s East Coast Digital Gateway.” The projects also align with the Centre’s India Semiconductor Mission and Digital India initiatives, ensuring faster data flow for domestic and international users.

Environmental implications

While the projects promise huge economic benefits, they also bring environmental challenges :

• High Power Demand: Ensuring supply without straining the state grid is key. The government plans to dedicate solar and wind energy parks for these centres.

• Water Use: Traditional evaporative cooling consumes millions of litres of water annually. Adoption of closed-loop and air-cooled systems is essential in a water-stressed region.

• Land and Biodiversity: Careful site selection and green belt development are needed to protect coastal ecosystems.

• E-waste Management: Proper disposal and recycling of server hardware must be part of project planning.

The companies have pledged to meet net-zero emission targets , with renewable energy commitments and rainwater harvesting measures.

Striking the balance

Visakhapatnam’s upcoming data parks represent a crossroad between digital ambition and environmental responsibility . If managed wisely, the city could become India’s sustainable model for future-ready data infrastructure balancing growth with green practices.

As one senior official from the state’s IT Department said recently,

“We want Vizag to show that technology and sustainability can go hand in hand. Our vision is not just to build data centres, but to build the future.”