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Visakhapatnam emerging as a major IT and data center location

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Visakhapatnam emerging as a major IT and data center location

in Economy
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Visakhapatnam emerging as a major IT and data center location
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Athira Sethu

Kochi, 14 Oct 2025

Visakhapatnam is fast emerging as a major hub of data storage and technology on India’s east coast. Recently, the state government has sanctioned a massive investment of ₹87,520 crore by Google subsidiary Raiden Infotech to develop a massive 1 GW cluster of data centres. The cluster will comprise three campuses in the Visakhapatnam-Anakapalli area, at Tarluvada, Adavivaram, and Rambilli. These campuses will take up approximately 500 acres of land. The formal agreement for this project will be inked in New Delhi on October 14.

Also, the Sify company is making large strides in Visakhapatnam. They are set to have the groundbreaking ceremony for their first AI edge data center and a new cable landing station, which will enhance submarine cable connectivity. This will facilitate better processing of data between Southeast Asian countries like Singapore, Malaysia, and Thailand and make Visakhapatnam a major hub for intercontinental data transfer.

Another thrilling news is Meta’s move to utilize Visakhapatnam as the landing point for its sub-sea cable initiative, ‘Waterworth.’ Meta, which owns Facebook, Instagram, and WhatsApp, has joined hands with Sify to make this project a reality in India.

Apart from these multinational corporations, a large business house is negotiating with the state government to set up another 1 GW data center at Visakhapatnam. This venture could infuse an additional ₹1 lakh crore investment in the city. The firm was also earlier allocated land for an IT development center in the Rushikonda IT Hills.

While it has not been operating of late, the Andhra Pradesh government also sanctioned land to the Adani Integrated Data Center Park. This project, which was given environmental clearance in January, may entail an investment of ₹20,000 crore.

Visakhapatnam has been waiting for a long time for the entry of large IT firms. All the current IT firms in the city are engaged in business management and backend activities. Yet, with fresh investments by firms such as Google, Meta, and Sify, the area is likely to experience major growth and job opportunities. In 2023, Infosys also established a new development center in Visakhapatnam.

The local leadership welcomes these trends. TDP state president Palla Srinivas emphasized that Google’s Raiden project would make Visakhapatnam a world IT and data hub. He also added that investments are not restricted to IT and data centers alone. Corporates like TCS, Mahindra, Lulu Group, and NTPC are also making investments in green technologies, the steel sector, and hydrogen-based initiatives in the area. This increasing investment will have a significant positive effect on the economy of Visakhapatnam.

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