Andhra Pradesh Pushes for Global Leadership in Data Infrastructure and Advanced Manufacturing

Amaravati, May 2026 : Andhra Pradesh is rapidly positioning itself as a global hub for next-generation manufacturing and digital infrastructure, State IT, Electronics and Communications, and Human Resource Development Minister Nara Lokesh said on Tuesday, underscoring the state’s ambition to move beyond being merely a destination for data centres to becoming a key producer of their critical components.

Speaking on the state’s industrial roadmap, Lokesh announced that the foundation stone for a new chiller manufacturing facility will be laid on Wednesday at Sri City, marking another major step in Andhra Pradesh’s expanding industrial ecosystem.

“With world-class industrial ecosystems like Sri City, strong policy support, and our unwavering focus on speed and scale, Andhra Pradesh is positioning itself as a global hub for next-generation manufacturing and digital infrastructure,” Lokesh said. “We are not content with being just a host for data centres. We are determined to become the engine that powers them.”

He described the upcoming Carrier Global Corporation facility at Sri City as a defining milestone in the state’s broader strategy to build a “full-stack digital infrastructure ecosystem,” which includes everything from energy systems and hyperscale data centres to advanced manufacturing of components that support them.

According to an official statement, Carrier’s investment reflects a strategic shift in Andhra Pradesh’s industrial policy—from attracting data centres alone to building an integrated ecosystem that produces the essential hardware and technologies powering the global digital economy.

The state has in recent years emerged as one of India’s fastest-growing data centre destinations, driven by policy reforms, infrastructure readiness, and large-scale international investments. In particular, Visakhapatnam has become a focal point of global digital infrastructure expansion.

Recent developments include a landmark $15 billion Google AI data centre hub in Visakhapatnam, one of the largest such investments in India, with a planned 1 GW hyperscale capacity. In addition, Reliance Industries has proposed a ₹1.6 lakh crore investment for a 1.5 GW data centre cluster in the state.

Combined with other domestic and international commitments, Andhra Pradesh currently has an estimated data centre investment pipeline exceeding ₹6 lakh crore, with a targeted capacity of around 6 GW—placing it well ahead of many national peers and among emerging global leaders in digital infrastructure capacity.

Officials said this rapid expansion is supported by progressive state policies, including dedicated power frameworks for data centres and simplified regulatory clearances, which are helping transform Visakhapatnam into a major hub for artificial intelligence, cloud computing, and high-performance digital systems.

The entry of Carrier Global Corporation is expected to significantly strengthen this ecosystem. The company’s advanced cooling technologies are considered essential for next-generation data centres, AI computing clusters, and high-density server environments, where thermal management is a critical operational requirement.

The state government is also actively working to develop a complete value chain that integrates digital infrastructure with manufacturing capabilities. This includes production of cooling and thermal management systems, power and energy solutions, precision engineering components, and electronic control systems.

By aligning manufacturing with the digital infrastructure sector, Andhra Pradesh aims to reduce dependence on imports, boost domestic production, increase exports, and position India as a global leader in data infrastructure manufacturing.

Sri City, already a major industrial hub, is central to this strategy. The government highlighted that the region has attracted approximately ₹12,000 crore in investments in the HVAC and air conditioning manufacturing sector alone. This segment has generated nearly 25,000 direct jobs and built a strong supplier ecosystem with an additional ₹4,600 crore in supporting investments.

Officials further stated that Andhra Pradesh is targeting a 60 percent share in India’s air conditioning production capacity by 2027, driven by scale expansion and technology integration at Sri City.

With global companies, large-scale digital investments, and manufacturing expansion converging in the state, Andhra Pradesh is seeking to establish itself as a critical node in the global digital and industrial supply chain.

Lokesh said the state’s vision is not just growth in isolated sectors but the creation of a self-sustaining ecosystem where manufacturing, energy, and digital infrastructure reinforce each other.

“The goal is clear,” he said. “We want Andhra Pradesh to power the digital world—not just participate in it.”

With multiple projects underway and a rapidly expanding investment pipeline, the state is expected to play a key role in shaping India’s future as a global technology and manufacturing powerhouse.