Andhra Pradesh CM aims to make Vizag an AI data center hub

Andhra Pradesh Chief Minister N. Chandrababu Naidu has announced plans to develop Visakhapatnam as a hub for Artificial Intelligence (AI) data centres and related industries. In a conversation with Business Standard, he shared details regarding the state's investment and development vision. The 31st Indian Industry Partnership Summit 2026 is set to begin in Visakhapatnam next Thursday, which will play a crucial role in achieving the state's economic goals.

Naidu stated that during the industry summit held last year, large-scale investments were announced in the state. At that time, 740 MoUs were signed, valued at approximately ₹22.6 trillion, which had the potential to create 19.3 lakh jobs. Out of these, 526 MoUs, involving investments of ₹17.2 trillion and capable of generating 12.9 lakh jobs, have been implemented so far. According to the Chief Minister, investments worth ₹31-32 trillion have been undertaken in various stages of MoUs or implementation. They are working on the principles of speed, security, and certainty in this process.

Major investments include Google's $15 billion Artificial Intelligence (AI) hub, ArcelorMittal Nippon Steel's ₹1.36 trillion steel plant at Nakkapalli, Reliance's approximately 1.5 GW AI data centre, and Tata Power Renewables' ₹49,000 crore investment. These investments will strengthen the state's economic framework.

Naidu has set a target to build a $2.07 trillion economy for Andhra Pradesh by 2047, with an estimated per capita income of ₹55 lakh. He aims to maintain the state's growth rate at 15-20 per cent, which is more than double India's growth rate of 7.5 per cent. He expressed confidence that India will come second in the world after China, and Andhra Pradesh will be first in India. He added that India is no longer just dependent on technology but is moving ahead in it.

The Chief Minister spoke about focusing specifically on sectors such as data centres, AI, quantum, space, drones, electronics, aerospace, and semiconductors. He presented specific development models for various regions: Tirupati as a global design capital, Vizag as an AI data centre and ancillary industry hub, Amaravati as a quantum manufacturing and port-led economy hub, and Tirupati and Rayalaseema to be developed as knowledge hubs.

Speaking on the competition between states for investment, he said that companies like Hyundai and Kia have chosen Andhra Pradesh instead of Tamil Nadu. He noted that while there will be competition between states, there should also be complementary efforts. Referring to his experience with the development of Hyderabad, he said they progressed by competing with Bengaluru and will also work alongside other states.

With the arrival of data centres, electricity demand will increase, for which he is focusing on renewable energy. Solar, wind, pumped storage, and, if necessary, nuclear power will be utilised. Amaravati will become a major centre for green energy consumption. He is making a 5 to 10-year plan to develop pumped storage in Polavaram and other irrigation schemes. Green energy is the future, and battery technology will also play an important role in it.

N. Chandrababu Naidu is the Chief Minister of Andhra Pradesh. He has worked towards developing various schemes and infrastructural facilities for the state's economic and technological development.