{"id":9083,"date":"2026-02-15T05:18:00","date_gmt":"2026-02-15T01:18:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/economy\/india-ai-data-city-plan\/"},"modified":"2026-02-16T03:21:29","modified_gmt":"2026-02-15T23:21:29","slug":"india-ai-data-city-plan","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/economy\/india-ai-data-city-plan\/","title":{"rendered":"India&#8217;s AI &#8216;Data City&#8217; Ambition: What It Means for Global Investors and Tech Entrepreneurs"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes 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style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p>New Delhi \u2013 As India strives to close the artificial intelligence gap with the United States and China, it is embarking on an ambitious project to build a massive new &#8220;data city&#8221; to drive digital growth on an unprecedented scale, according to Nara Lokesh, the information technology minister for Andhra Pradesh state.<\/p>\n<p>\u201cThe AI revolution is here, no second thoughts about it,\u201d Lokesh affirmed, emphasizing Andhra Pradesh\u2019s city of Visakhapatnam as a strategic hub for India&#8217;s AI ambitions. Speaking to AFP ahead of an international AI summit next week in New Delhi, he stressed the nation\u2019s commitment to embracing this technological shift.<\/p>\n<p>Andhra Pradesh has already secured investment agreements totaling $175 billion for 760 projects. This includes a $15 billion investment by Google to establish its largest AI infrastructure hub outside the United States. Additionally, a joint venture involving India\u2019s Reliance Industries, Canada\u2019s Brookfield, and US firm Digital Realty is investing $11 billion to create an AI data center in Visakhapatnam.<\/p>\n<p>Visakhapatnam, also known as \u201cVizag,\u201d is home to approximately two million people and is traditionally recognized for its cricket stadium rather than technology. However, it is now being positioned as a key landing point for submarine internet cables connecting India with Singapore.<\/p>\n<p>Lokesh outlined the ambitious scope of the data city, describing it as an integrated ecosystem spanning a 100-kilometer (60-mile) radius\u2014comparable in size to Taiwan. He highlighted that Andhra Pradesh attracted nearly 25 percent of all foreign direct investments in India in 2025.<\/p>\n<p>\u201cThis is about more than just data centers,\u201d Lokesh said, revealing the state\u2019s offer of land at just one US cent per acre (three cents per hectare) to major tech investors. \u201cI\u2019m targeting companies that manufacture servers, air conditioning, water cooling systems\u2014the whole nine yards.\u201d<\/p>\n<p>Lokesh, 43, is Stanford-educated and the son of Andhra Pradesh Chief Minister N. Chandrababu Naidu, who played a pivotal role in developing Hyderabad\u2019s &#8220;Cyberabad&#8221; tech hub. Both are allies of Prime Minister Narendra Modi, who will host the AI Impact Summit starting Monday.<\/p>\n<p>India currently ranks third in the global AI power index, surpassing South Korea and Japan, as measured by more than 40 indicators including patents and private funding, according to Stanford University\u2019s Institute for Human-Centered AI. With over a billion internet users, India is attracting significant interest from generative AI companies looking to tap its vast market.<\/p>\n<p>In December, Microsoft announced a $17.5 billion investment to bolster India\u2019s AI infrastructure, marking its largest-ever investment in Asia. However, critics argue India still trails in access to advanced computing power and commercial AI deployment, remaining more of a consumer than a creator of cutting-edge AI technology.<\/p>\n<p>Some question whether data centers will generate substantial employment, a concern Lokesh dismisses. \u201cEvery industrial revolution has always created more jobs than it has displaced,\u201d he said. \u201cBut those jobs have been created only in countries that have embraced the industrial revolution.\u201d<\/p>\n<p>Lokesh also stressed that the state\u2019s provision of land at minimal cost will be offset by job creation and economic growth. Infrastructure demands, like electricity and water, have been carefully planned, with surplus water from monsoon runoff into the Bay of Bengal designated for cooling the energy-intensive data centers.<\/p>\n<p>Citing China as a model, he praised how the country quickly lifted millions out of poverty through systematic industrialization and said Andhra Pradesh&#8217;s approach to building industrial clusters was inspired by China&#8217;s success.<\/p>\n<p>With a target of six gigawatts of data center capacity\u2014three already secured and three more forthcoming\u2014Andhra Pradesh aims to gain a competitive advantage through speed and scale. The central government granted &#8220;in-principle approval&#8221; last year for six 1.2 GW nuclear power plants at Kovvada, Andhra Pradesh, to support this growth.<\/p>\n<p>\u201cWe are on a journey,\u201d Lokesh concluded. \u201cWe will execute these projects at a pace the country has never seen.\u201d<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/p>\n<p>India&#8217;s ambitious development of a vast AI-driven &#8220;data city&#8221; in Andhra Pradesh, backed by $175 billion in investments and tech giants like Google and Microsoft, signals a monumental leap in digital infrastructure. <strong>For businesses in Oman, this presents a strategic opportunity to tap into India&#8217;s booming AI ecosystem through collaborations, data-driven ventures, or tech outsourcing partnerships.<\/strong> Smart investors should consider positioning themselves early in AI adoption and regional digital infrastructure to harness the ripple effects of India&#8217;s accelerated AI industrialization and emerging tech clusters.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India is planning a vast new &#8220;data city&#8221; in Visakhapatnam to power digital growth and narrow the AI gap with the US and China. Andhra Pradesh has secured $175 billion in investments, including Google&#8217;s $15 billion AI hub and an $11 billion AI data center venture. The city will host AI infrastructure, submarine cables, and industrial clusters, aiming for six gigawatts of data center capacity, backed by planned nuclear power plants. The project promises job creation and economic transformation inspired by China&#8217;s rapid development.<\/p>\n","protected":false},"author":18,"featured_media":9084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[482],"tags":[264,2372,217],"class_list":["post-9083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-artificial-intelligence","tag-data-centers","tag-india"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/02\/3294912.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/9083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=9083"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/9083\/revisions"}],"predecessor-version":[{"id":9085,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/9083\/revisions\/9085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/9084"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=9083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=9083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=9083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}