Like Hitec City, AP Govt set to introduce Data City in Visakhapatnam

Andhra Pradesh is poised to develop a cutting-edge Data City near Visakhapatnam, a major step towards transforming the state into a tech powerhouse. Spearheaded by Nara Lokesh, the state’s IT minister and son of Chief Minister N Chandrababu Naidu, this ambitious project is inspired by the success of Hyderabad’s Hitec City, which Naidu himself was instrumental in establishing.

The Data City, planned for Madhurawada, will span 500 acres and house advanced data centres and artificial intelligence hubs. Aimed at creating two million jobs within five years—a key election promise by the Telugu Desam Party—the initiative seeks to attract major global tech players.

Google and TCS Join the Fray

The Andhra Pradesh government has begun acquiring land for the project, with 80 acres set to be allocated to Google for a state-of-the-art data centre under a Memorandum of Understanding (MoU). Tata Consultancy Services (TCS) is also expected to acquire 30 acres to expand its operations in the region.

Nara Lokesh has been actively engaging with international tech leaders to secure investments. At the World Economic Forum in Davos, he held discussions with Temasek Holdings about establishing data centres and AI parks and explored potential collaborations with Ravi Kumar, CEO of Cognizant.

Replicating Hyderabad’s Tech Growth

Drawing from Hyderabad’s model, where Microsoft served as a pivotal anchor company, Andhra Pradesh plans to position Google as the flagship player in the Data City. This approach is expected to attract a wave of other tech giants, cementing the region’s status as a tech hub.

Beyond its technological ambitions, the state envisions adding tourist attractions to the region, enhancing its appeal as both a business and leisure destination.

Strategic Response to Demographic Shifts

The Data City project in Visakhapatnam is part of Andhra Pradesh’s broader efforts to address economic and demographic challenges, particularly after Hyderabad became part of Telangana. The state government is drafting a “demographic management” policy to tackle issues such as a shrinking workforce and an ageing population. Governor S Abdul Nazeer highlighted these challenges in his Republic Day address, emphasizing the need for investments in healthcare, social security, and community welfare.

By combining technological innovation with forward-thinking policies, Andhra Pradesh aims to redefine its economic landscape and emerge as a leader in India’s tech ecosystem.

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