Blackstone-backed data center operator AirTrunk has submitted a detailed project report to the Andhra Pradesh government, outlining plans for a substantial ₹1.03 lakh crore (approximately $11 billion) investment. This significant proposal aims to establish two hyperscale data center campuses within the state.
The proposed facilities are designed to have a combined capacity of up to 1.8 gigawatts (GW), positioning them as one of India's largest planned digital infrastructure developments. The investment is currently under consideration by state authorities and remains contingent on securing the necessary regulatory approvals.
Andhra Pradesh: A Growing Hub for Digital Infrastructure
This initiative aligns with Andhra Pradesh's strategic efforts to emerge as a leading destination for hyperscale data centers and artificial intelligence (AI) infrastructure. The state has been actively attracting interest from global technology firms and infrastructure investors, driven by the escalating demand for cloud services and advanced AI applications.
Notably, Google (Alphabet-owned) is also developing a $15 billion AI hub in Andhra Pradesh, further solidifying the state's position in India's rapidly expanding digital landscape. If approved, AirTrunk's investment is expected to significantly boost the state's data center capacity and generate opportunities across various sectors, including construction, power infrastructure, equipment manufacturing, and associated services.
Addressing Power and Water Resource Concerns
The rapid expansion of hyperscale data centers often raises concerns regarding their substantial electricity and water requirements. Andhra Pradesh Chief Minister N. Chandrababu Naidu has affirmed the state government's commitment to address these challenges by expanding renewable energy capacity and strengthening water supply infrastructure to support such large-scale developments.
AirTrunk has stated that its proposed campuses will incorporate low-water, air-cooled technology, specifically designed to minimize water consumption. Furthermore, the company plans to utilize industrial water supplies rather than municipal sources, aiming to alleviate pressure on water resources used by local households.
India's Expanding Data Center Pipeline
These proposed facilities will contribute to India's growing pipeline of hyperscale data center projects. Global operators are increasingly seeking robust infrastructure capable of supporting the demanding workloads associated with modern AI and cloud computing. The ultimate scale and investment of this project will depend on regulatory clearances, infrastructure readiness, and AirTrunk's final development plans.