Rs 31,387-Crore Green AI Data Centre Approved for Visakhapatnam as YSRCP Demands Infrastructure Safeguards
Visakhapatnam has cemented its position as Andhra Pradesh's anchor destination for large-scale technology investment, with the state government approving a Rs 31,387-crore green AI data centre project this week. The clearance has simultaneously energised industry confidence and intensified political debate, as opposition YSRCP demands a comprehensive infrastructure blueprint, while a major AP Chambers business expo scheduled for September is set to further consolidate the port city's commercial momentum across multiple sectors.
🏢 State Approves AM AI Factory's 512-MW Green AI Data Centre at Bheemunipatnam
The Andhra Pradesh government has granted approval to AM AI Factory Pvt Ltd for a 512-megawatt green integrated AI data centre facility in Visakhapatnam district, ETDatacenters reported on August 23. The project entails an investment exceeding Rs 31,387 crore and is to be developed at Amanam village in Bheemunipatnam mandal. According to IT Secretary Bhaskar Katamneni, the facility is expected to generate employment for up to 1,000 people in the region. The government order specifies a completion timeline of two years and four months, and the state has committed to providing power infrastructure, water supply, and fiscal incentives including tax exemptions to support the project's development. The facility's 512-MW capacity positions it among the largest AI data centre projects proposed anywhere in India, and ETDatacenters noted that the approval marks a pivotal moment for Andhra Pradesh's ambitions to emerge as a leading AI compute and digital infrastructure hub in South India. The project is structured to significantly boost the country's AI compute capacity at a time when demand for high-performance data infrastructure is accelerating rapidly across the technology, finance, and public administration sectors. Visakhapatnam's strategic port connectivity, established industrial base, and relative land availability make the Bheemunipatnam site particularly suited to such capital-intensive, power-hungry infrastructure. [3]
🗳️ YSRCP's Gudivada Amarnath Questions Water and Power Plans for Visakhapatnam Data Centres
Former Andhra Pradesh Minister and YSR Congress Party leader Gudivada Amarnath raised critical questions about the infrastructure preparedness required to sustain the wave of data centre approvals centred on Visakhapatnam, ANI reported on August 23. Speaking from the city, Amarnath demanded that the state government present a clear and credible blueprint detailing how it intends to supply adequate water and uninterrupted power to the data centres being approved at speed. The YSRCP leader's concerns centred on the immense resource demands that large-scale data centres impose: facilities of this scale require reliable power at massive volumes and significant quantities of cooling water, both of which present challenges in a region already managing competing demands from existing industry, agriculture, and urban consumption. Without a comprehensive infrastructure plan, Amarnath argued, the approvals risk creating stranded investments or placing unsustainable pressure on Visakhapatnam's existing utility networks, ultimately affecting ordinary consumers and established businesses. The ANI dispatch noted that the YSRCP intervention signals that while the data centre drive is broadly welcomed for its employment and revenue potential, it will face sustained legislative and civic scrutiny regarding its environmental footprint and its demands on public infrastructure as additional large-scale projects receive clearance in the Visakhapatnam district. [7]
🎉 AP Chambers Business Expo 2026 to Convene MSMEs, Startups and Investors in Visakhapatnam from September 11
The A.P. Chambers of Commerce and Industry is set to host Business Expo 2026 in Visakhapatnam from September 11 to 13, bringing together micro, small and medium enterprises, startups, investors, exporters, government departments, and industry leaders from Andhra Pradesh and neighbouring states, New Indian Express reported on August 26. The curtain-raiser event was held in Vijayawada, where AP Chambers President Potluri Bhaskara Rao and General Secretary Subbarao Ravuri joined Chairman of the Media Academy of Andhra Pradesh Alapati Suresh in formally announcing the three-day programme. The expo is designed as a platform for business networking, procurement linkages, and investment facilitation, targeting the vibrant MSME sector that forms the backbone of Andhra Pradesh's economy. Visakhapatnam's profile as the state's largest city and a strategic port hub makes it a natural venue for such a gathering, and the city's growing identity as a technology and data infrastructure destination adds a new dimension to what has traditionally been a trade and commerce showcase event. The three-day format is expected to accommodate sector-specific sessions, product exhibitions, and structured dialogues between industry stakeholders and government agencies, reflecting the Chambers' ambition to position the expo as a key fixture in the state's annual business calendar. [5]
Sources: [3] ET Datacenters · [7] ANI News · [5] The New Indian Express