Synopsis
Andhra Pradesh aims to become a global 'quantum valley' for AI and data centres, attracting significant FDI. Chief Minister Naidu announced plans for a digital, knowledge-driven ecosystem, emphasising a '4P' partnership model. The state is also a leader in clean energy, contributing substantially to India's green energy goals and attracting major investments in data infrastructure.Listen to this article in summarized format
Naidu said this at the ET Awards for Corporate Excellence in Mumbai on Saturday, where he received the Business Reformer of the Year award.
He explained the initiative would be supported by strong investment momentum, with the state having already attracted foreign direct investment (FDI) commitments of up to $15 billion.
He added that the focus would be on building a digital and knowledge-driven ecosystem to support next-generation industries. “We need a strong foundation for a knowledge economy,” Naidu said.
He outlined that the development model would follow a “4P” framework — public, private, and people partnership to enable collaboration between the government, industry, and citizens.
The proposed “quantum valley” is expected to focus on high-performance computing, advanced research, and digital infrastructure, in line with broader efforts to expand India’s presence in deeptech.
Naidu also said the state is prioritising a cost-effective energy sector aligned with national clean energy targets. He noted that Andhra Pradesh aims to contribute 160 gigawatts (GW) towards India’s 500-GW green energy goal by 2030, of which nearly 90 GW has already been achieved.
He added that the pace of expansion reflects the state’s ambitions and could support India’s long-term goal of exporting electricity.
Highlighting that reforms in the power sector have helped attract investor interest, he said the state plans to lay the foundation stone for data centre and AI projects, including a proposed 1-GW project by Reliance Industries. He added that the high volume of proposals led the government to cap proposals at 5GW.
Major AI bets
Google is set to begin work on its 1-GW data centre hub on April 28. The $15 billion project, considered India’s single largest FDI, will comprise three campuses near Visakhapatnam and is being executed by its subsidiary, Raiden Infotech India. Land allocation for the project has been expanded to over 600 acres. Reliance Industries has also committed to setting up a 1-GW AI data centre in the state.
Additionally, the Andhra Pradesh Economic Development Board has partnered with Tillman Global Holdings to develop a 300-megawatt hyperscale data centre campus in Visakhapatnam, with an investment of about Rs 15,000 crore. The project is expected to generate up to 1,000 indirect jobs by 2028, the government has said.
Beyond data centres
The state government has signed more than 400 MOUs, including with Brookfield Corporation, ReNew Energy Global, SAEL Industries, and Hero Future Energies, indicating a broader push to attract infrastructure and energy investments.
At the World Economic Forum Annual Meeting in January, state officials reviewed progress on earlier commitments, including a $12 billion MoU signed during the CII Partnership Summit in Visakhapatnam.
Naidu called Amravati a “people’s capital” and said it is being planned as a sustainable, future-ready city based on green energy and net-zero principles.
