Written By Deepti Ratnam
Published By: Deepti Ratnam | Published: Jul 31, 2025, 10:00 AM (IST)
In what could be a landmark development in India in terms of digital infrastructure, Andhra Pradesh has clinched two big deals in terms of data centre investments with renowned worldwide technology giant Google and Indian ICT services firm Sify Technologies. The total worth of all these agreements is a staggering $7.9 billion, and its ultimate goal is to enhance data processing capacity in the state at a very high level.
Google has invested in constructing a 1-gigawatt (GW) data centre that will be located in Visakhapatnam, which is one of the biggest projects of Google in Asia. The overall investment is estimated to be 6 billion dollars but 2 billion dollars will be channeled to the development of renewable power structures.
This falls in line with the efforts by Google to move in a globalised trend to operate sustainably and have their data centres running on green energy. The pent-up facility will be the largest one in Asia in terms of the size of investment as well as the energy capacity.
Meanwhile, the Andhra Pradesh cabinet has just approved another data centre project piloted by Sify. This project will comprise a 550-megawatt (MW) generation that will be supported by a capital investment of about 1.9 billion dollars. The combined contribution of Google and Sify will push the data handling infrastructure in Andhra Pradesh by 1.55 GW.
These mega-deals are under the larger strategy of Andhra Pradesh to attract global tech investments, which are facilitated by the IT & Global Capability Centres (GCC) Policy 20242029. The policy presents businesses the following types of benefits capital subsidies, discounts in power, support of rents, and special packages of large scale projects. The state is very intent on becoming a digital hub with hybrid work infrastructure.
State IT Minister Nara Lokesh has described a bold plan to scale up the data centre capacity in Andhra Pradesh to 6 GW, in five years. The state has already purchased 1.6 GW of power through recent investments, and the rapid deployment hoped to become an Indian leader in high-capacity digital economy is a near-zero base.