Andhra Pradesh govt to develop Data City near Vizag, create 2 mn jobs

Andhra Pradesh is set to establish a cutting-edge Data City, complete with data centres and artificial intelligence hubs, in the vicinity of Visakhapatnam, according to a report in The Economic Times.

 

In line with the Telugu Desam Party's election promise to create 2 million jobs within five years, the state government has unveiled plans to develop the Data City in Madhurawada, near Visakhapatnam. This initiative aims to mirror Hyderabad's successful Hitec City model.

 

Spanning across 500 acres, the Data City will serve as a comprehensive hub for IT companies offering a range of technological solutions. The government has already begun acquiring land for the project, with plans to allocate 80 acres to Google for a data centre, following a Memorandum of Understanding (MoU) between the company and the Andhra Pradesh government, although further details remain undisclosed. Tata Consultancy Services will also be securing 30 acres for its expansion.

 

 

Data City to mirror Hyderabad's Hitec City

 

The concept of Data City is largely credited to Nara Lokesh, the state's IT minister and the son of chief minister N Chandrababu Naidu, who had pioneered Hyderabad's Hitec City.

 

During the World Economic Forum (WEF) in Davos, Lokesh engaged in talks with Temasek Holdings to set up data centres and parks in Visakhapatnam. He also held discussions with Ravi Kumar, CEO of Cognizant, regarding the potential for this ambitious venture. “At Davos, we have seen tremendous interest from IT companies, data centres, AI and deep tech firms to enter Andhra Pradesh. We are now consolidating all these opportunities to locate them near Vizag. This will emerge as the hub for tech firms in India,” Lokesh told The Economic Times.

 

Following the Hitec City model, the Andhra government plans to attract one major company to set the stage for others. In Hyderabad’s case, Microsoft was the initial anchor company, with others following suit. It is speculated that Google could take on a similar role for Data City.

 

Once key companies are on board, the state government may look into further developing the area by adding tourist attractions to boost the region’s appeal. Faced with financial challenges, the Andhra Pradesh government is working to stimulate investment to support its economy and fulfil its “Super Six” election promises.

 

Decentralising development

 

Since the bifurcation of the state, which saw Telangana inherit Hyderabad, the major revenue-generating city, Andhra Pradesh has focused on decentralising development. Recently, the state announced it would soon release a policy on 'demographic management' to address the impacts of a shrinking workforce, an ageing population, and evolving family structures.

 

Governor S Abdul Nazeer highlighted the state's significant demographic changes during his Republic Day address in Vijayawada, noting a sharp decline in the Total Fertility Rate (TFR), an increasingly elderly population, and the breakdown of traditional family systems. This policy will include investments in healthcare infrastructure, development of inclusive social security schemes, and initiatives to support community-based welfare systems.

 

In the race to become a leading data centre hub, Andhra Pradesh is positioning itself alongside Telangana and Maharashtra, all of which are unveiling ambitious plans to bolster their digital infrastructure and attract international players.