India is advancing plans for a large-scale artificial intelligence focused “data city” in Visakhapatnam as it seeks to narrow the technology gap with the United States and China. The initiative is being spearheaded by Andhra Pradesh’s Information Technology Minister Nara Lokesh, who says the project is designed to power digital growth on an unprecedented scale. Speaking ahead of an international AI summit in New Delhi, Lokesh stated that India has made a clear decision to embrace the AI revolution and position itself as a serious contender in the global technology landscape.
The southeastern port city of Visakhapatnam, home to around two million people and commonly known as Vizag, is being positioned as the cornerstone of this strategy. Traditionally known for its port activity and international cricket matches, the city is now being pitched as a major digital infrastructure hub. According to Lokesh, Andhra Pradesh has secured investment agreements worth $175 billion across 760 projects, including a reported $15 billion commitment by Google to establish its largest AI infrastructure hub outside the United States. In addition, a joint venture involving Reliance Industries, Brookfield, and Digital Realty plans to invest $11 billion in developing an AI focused data centre in the same city.
Lokesh outlined a vision that extends beyond standalone data centres. The proposed data city will span an ecosystem within a 100 kilometre radius, integrating connectivity, infrastructure, and industrial capacity. Visakhapatnam is also being promoted as a landing point for submarine internet cables linking India to Singapore, a move aimed at strengthening international bandwidth and positioning the region as a digital gateway. Andhra Pradesh has reportedly attracted close to 25 percent of India’s total foreign direct investment in 2025, reinforcing the state’s ambition to lead in next generation infrastructure development.
The state government is offering aggressive incentives to attract global manufacturers and technology firms, including land at nominal rates for major investors. Lokesh indicated that the strategy includes pursuing companies that manufacture servers, cooling systems, and related hardware essential to AI data centres, in addition to hosting the facilities themselves. By targeting the entire supply chain, Andhra Pradesh aims to create a comprehensive technology ecosystem that supports high performance computing, cloud infrastructure, and AI deployment. As India intensifies its AI ambitions, the proposed data city in Visakhapatnam signals a coordinated effort to combine connectivity, capital investment, and industrial development to strengthen its position in the global digital economy.
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