Andhra Pradesh to develop Data City Project near Visakhapatnam; Google, TCS plans for expansion
The concept of the Data City has been spearheaded by Nara Lokesh, the state’s IT minister and son of Chief Minister N. Chandrababu Naidu, who was instrumental in the development of Hyderabad's Hitec City.
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Andhra Pradesh is set to build a state-of-the-art Data City near Visakhapatnam, which will feature advanced data centres and artificial intelligence hubs, The Economic Times reported. As per the report, this development is part of the state government's effort to create two million jobs within five years, fulfilling a key promise made by the Telugu Desam Party during elections.
The proposed Data City, located in Madhurawada, will span 500 acres and serve as a comprehensive technological hub for IT companies. The aim is to replicate the success of Hyderabad's Hitec City, which has become a major IT and business destination in India.
According to the media reports, the Andhra Pradesh government has already begun acquiring land for the project, with plans to allocate 80 acres to tech giant Google for a data centre, following a Memorandum of Understanding (MoU) between the company and the state. Tata Consultancy Services (TCS) is also set to acquire 30 acres for its expansion in the region.
The concept of the Data City has been spearheaded by Nara Lokesh, the state’s IT minister and son of Chief Minister N. Chandrababu Naidu, who was instrumental in the development of Hyderabad's Hitec City. Lokesh has actively pursued discussions with international tech leaders to bring investment into Andhra Pradesh. During his participation at the World Economic Forum (WEF) in Davos, Lokesh engaged with Temasek Holdings about setting up data centres and AI parks in Visakhapatnam. He also held talks with Ravi Kumar, CEO of Cognizant, regarding potential collaborations for the venture.
Mirroring the approach taken in Hyderabad, where Microsoft played a pivotal role in attracting other tech companies, the Andhra Pradesh government plans to secure a major anchor company for the Data City. Google is being considered as a potential lead player, which could pave the way for other tech giants to establish a presence in the region.
In addition to tech infrastructure, the government envisions adding tourist attractions to enhance the region’s appeal once the initial phase is complete. With a focus on boosting investment and economic growth, the Data City is seen as a key initiative to diversify and decentralise Andhra Pradesh's economy, especially after losing Hyderabad to Telangana following state bifurcation.
As part of its broader efforts, the state government is also planning to release a policy on "demographic management" to address challenges such as a shrinking workforce, an ageing population and changing family structures. Governor S. Abdul Nazeer emphasized the demographic shifts in his Republic Day address, noting a declining fertility rate and increasing elderly population in the state. The policy will include investments in healthcare, social security schemes, and community welfare initiatives.
