For years, Visakhapatnam — or Vizag, as most Indians fondly call it — was known for its pristine beaches, naval base, and port-driven economy. But in 2025, it has started wearing a new identity: that of India’s next great technology and data infrastructure hub.

The transformation began taking shape after Google, through its partner Raiden Infotech, announced plans to invest ₹87,520 crore (roughly $10 billion) to build Asia’s largest data centre cluster in and around Visakhapatnam. The project will span over 1 GW of capacity and operate across multiple campuses in Adavivaram, Tarluvada, and Rambilli.

Why Vizag, and Why Now?

The choice of Visakhapatnam wasn’t random. It represents a strategic blend of geography, policy, and vision. As a coastal city with direct access to the Bay of Bengal, Vizag is perfectly positioned for submarine cable landings — the backbone of global internet traffic.

Andhra Pradesh’s government has moved fast to capitalize on this advantage. It has rolled out a single-window clearance system for large technology and infrastructure projects, introduced green power incentives, and offered long-term land leases for hyperscale facilities. The state’s plan emphasizes not only infrastructure, but a supporting ecosystem — AI research parks, cloud training centers, and logistics hubs are part of the vision.

“We want Vizag to be to the East Coast what Bengaluru became to the South,” a senior IT department official told The Times of India.

The Investment Wave Has Begun

Google’s project may be the catalyst, but it’s far from the only one. Indian IT firms such as Sify Technologies and TCS have already expressed interest in setting up new campuses and AI-enabled facilities.

• Sify Technologies is reportedly working on an edge-computing centre and a submarine cable landing station.
• Meta, via its Waterworth subsea project, plans to link Mumbai and Vizag with a high-capacity undersea cable, boosting international bandwidth.
• Several mid-tier IT companies have collectively pledged more than ₹19,000 crore in local infrastructure and R&D centers.

These moves are expected to create over 1.8 lakh jobs — both direct and indirect — over the next five years.

A New Growth Story for Eastern India

Visakhapatnam’s rise marks a shift in India’s technology geography. For decades, the digital economy was concentrated in a handful of cities — Bengaluru, Hyderabad, Pune, Gurugram. Vizag’s emergence signals a more distributed, inclusive growth model.

Industry experts say decentralization matters. “India’s next tech revolution won’t come from one city — it’ll come from ten,” says Radhika Jain, a senior analyst at IDC India. “Vizag represents the first major test of that theory.” The city already hosts Fintech Valley Vizag, launched in 2016 to promote blockchain, digital payments, and AI innovation. The combination of academic institutions, a growing talent pool, and sea connectivity gives Vizag the ingredients for long-term success.

Challenges on the Horizon

Large-scale projects in India often encounter land acquisition and environmental hurdles. Parts of Rambilli and Adavivaram have seen legal disputes over land claims that could push back timelines.

Power and sustainability are also front-of-mind. Data centres are energy-intensive, Andhra Pradesh has committed to a mix of solar and offshore wind to meet demand. If implemented well, Vizag could become a model for green data infrastructure in Asia.

What It Means for India’s Digital Future

If all goes to plan, initial operations for the first cluster could begin by mid-2028. Once live, Vizag’s data centre ecosystem will anchor not just cloud services but also high-performance AI training workloads, IoT platforms, and latency-sensitive digital services.

“Data is the new oil — and data centres are the refineries,” says cloud strategist Anil Mehta. “Vizag is positioning itself as the refinery capital of India’s digital economy.”

The Road Ahead

By 2030, some analysts expect Visakhapatnam to be a strategic data corridor for the Indo-Pacific, rivalling cities that have long dominated regional connectivity. Subsea cables, hyperscale campuses, and policy support lay the foundation — but success will hinge on execution: timely delivery, sustainability, and talent retention.

As cranes rise along the shore and blueprints become construction sites, Vizag’s narrative is shifting from what could be to what’s coming next.