Vizag all set to ride data centre boom!

Visakhapatnam: The sobriquet ‘Port city’ or ‘Steel city’ is passe for Visakhapatnam now; for, it has earned a new tag: ‘Data centre hub’.

Soon after the coalition government came to power in Andhra Pradesh, north Andhra began witnessing signs of transformation.

Also referred to as the ‘Green city’, Vizag is now turning into a ‘Google’ city for apparent reasons. With the global tech giant setting up its enormous campus in Visakhapatnam to deliver cloud and AI at a massive scale, there is a lot of chatter now about data centres.

After Google announced its $15-billion 1-Gigawatt hyperscale AI data centre project in the city, several industries, IT companies, and other data centres are queuing up to set up shop in north Andhra. This shift comes as the Andhra Pradesh government is keen on adding data centre capacities, building a holistic ecosystem, offering incentives, introducing industry-friendly policies, and facilitating ease of doing business.

In addition, prospective power availability, allocation of sites, and supportive infrastructure in the region cater to the strong demands of the global companies that are now finding the region quite favourable to invest.

Backed by Adani ConneX as well as Airtel Nxtra and driven by cutting-edge infrastructure, Google hyperscale AI data centre is coming up in Taruluvada, Rambilli, and Adavivaram areas. Clear timelines have been drawn for the project execution. The NDA government has allocated 601 acres for the data centre ecosystem, which is slated to transform the technological landscape of the country and pave the way for robust data connectivity with Europe, Australia, Africa and the US through subsea infrastructure. The first phase of the key project is expected to be completed in two years.

A cluster of data centres

Apart from Google, ReNew Energy Global Plc proposes to set up a Rs.85,200 crore Green Data Centre in a collaborative model in Anakapalli with a proposed capacity of 1,000-MW and a commitment of 1,880 jobs.

Earlier, the Andhra Pradesh government approved AM AI Factory Private Ltd’s proposal for a 512-MW green integrated AI data centre in Visakhapatnam with an investment of Rs.31,387 crore. This facility is slated to be wrapped in two years. While the state government facilitates power infrastructure, water supply, and a host of fiscal incentives, the facility is expected to create 1,000 jobs.

In addition, Data Centre Holdings India LLP is setting up a 486-MW data centre with a commitment of 1,250 jobs. The facility that is coming up in Visakhapatnam involves an investment of Rs.58,743 crore.

Also, Sify Infinit Spaces Limited proposed a 500-MW data centre to be set up at an estimated cost of Rs.15,266 crore in Visakhapatnam with a promise to provide 600 jobs.

Along with Sify, the state government approved three other projects, including a 100-MW data centre of CtrlS Datacentres Limited in Anakapalli with an estimated investment of Rs.2,788 crore. These apart, some more data centres are in the pipeline.

With its growing data centre ecosystem expected to create over 51,800 jobs and fuel demand for 2.33 crore sq. ft. of residential real estate, the erstwhile undivided Visakhapatnam is set to become one of India’s largest digital infrastructure hubs.

The recent research report by Square Yards, which focused on ‘How India’s data centre revolution is rewriting real estate?’, highlighted this. According to the report, the proposed data centre projects in and around Visakhapatnam will generate 51,840 jobs, including 3,240 direct jobs and 48,600 jobs across allied sectors such as construction, electrical works, logistics, warehousing, transport, hospitality, retail, maintenance, and other support services. The report indicated that the biggest impact of data centres will not be confined to the campuses themselves. Instead, they will create an entire ecosystem of businesses and services around them, attracting investments in power, fibre connectivity, utilities, logistics, and commercial infrastructure.

The Chandrababu Naidu-led NDA government in Andhra Pradesh has set an ambitious target of providing 20 lakh jobs to the people. A majority of these jobs are expected to be created in north Andhra itself. The Andhra Pradesh government has been pushing to place the erstwhile undivided Visakhapatnam on a global map, generating job opportunities, developing a favourable ecosystem, multiplying economic growth, and, more importantly, ending migration.

However, as Vizag’s data centre capacity expands, their establishment sparked a fierce debate among environmentalists, activists, and NGO representatives, with some questioning the transparency of these projects.

Environmentalists, people’s groups, and activists flag potential risks associated with the data centres and have been campaigning against them. They demand, “Why do we need data centres, especially when developed countries like the US turned them down? Also, at a time when Vizag is already reeling under water scarcity?”

They expressed concern that the data centres with their enormous appetite for power, space, and water would only worsen the present ecosystem in and around Visakhapatnam. Opposing the data centre projects, Green Visakha has been flagging the lack of transparency in the fast-tracked approvals, grant of unfair incentives, and absence of public consultations.

ABOUT THE AUTHOR

Rani Devalla

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Rani Devalla is an experienced journalist specialised in a range of beats. From crime to politics, health to human interest, education to defence along with entertainment and feature stories, Rani Devalla, an accomplished writer with a passion for exploring diverse genres, has been reporting for the past 14 years. Serving as Bureau Chief of The Hans India in Visakhapatnam, Rani Devalla contributes to the organisation's editorial department through daily reporting, special stories and feature stories. After completing B.Com, Rani Devalla pursued Masters in Human Resource Management. Prior to joining The Hans India, Rani Devalla worked as a Principal Correspondent with The Hindu Group for six-and-a-half years. With rich expertise, she brings diverse perspectives to her reporting that makes her narratives stand out. When not immersed in writing, the journalist spends time reading, travelling and journaling.

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