India’s Andhra Pradesh to Build $175 Billion AI Data City in Visakhapatnam
February 15, 2026
India is moving fast to close the AI gap with the US and China. Andhra Pradesh’s IT minister, Nara Lokesh, announced plans for a huge new "data city" in Visakhapatnam to power digital growth. The state has secured investment deals worth $175 billion across 760 projects. This includes a $15 billion investment from Google for its largest AI hub outside the US and an $11 billion AI data center from Reliance Industries, Brookfield Canada, and Digital Realty. Visakhapatnam, known as Vizag, is a port city now set to become a key point for submarine internet cables between India and Singapore. The data city will spread over a 100 km radius, roughly the width of Taiwan. Lokesh said, "The AI revolution is here, no second thoughts about it," adding that Andhra Pradesh received nearly 25% of all foreign direct investment in India in 2025. The government offers land at just one US cent per acre to big investors and is targeting not only data centers but also companies making servers, air conditioning, and cooling systems. Lokesh is the son of the Andhra Pradesh Chief Minister and emphasizes the job creation potential of this AI push. "Every industrial revolution has always created more jobs than it has displaced," he said. The state also plans to meet the large energy and water demands of data centers, including using surplus monsoon water to cool them. Andhra Pradesh is inspired by China’s rapid poverty reduction and industrial clusters to guide its AI growth. With six gigawatts of data center capacity targeted, three already signed and three underway, Andhra Pradesh aims for unmatched speed and scale. New Delhi has given in-principle approval for six 1.2 GW nuclear plants in the state to support power needs. Lokesh said, "We will execute these projects at a pace that the country has never seen."
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Tags:
Artificial intelligence
Data centre
Andhra pradesh
Investment
Ai infrastructure
Visakhapatnam
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