Andhra Pradesh’s IT and Human Resources Development Minister Nara Lokesh said that misconceptions around data centres must be addressed through informed public discussion. He added that data centres have become a key pillar of Andhra Pradesh’s digital infrastructure strategy.
Speaking on the growing debate around large-scale data centre investments, the minister said concerns about the industry are often shaped by incomplete information and that greater awareness is needed about the role such facilities play in supporting the digital economy.
He noted that data centres are increasingly becoming foundational infrastructure for artificial intelligence (AI), cloud computing, digital services and enterprise technology operations.
The remarks come as Andhra Pradesh accelerates efforts to position itself as a major destination for hyperscale data centres and AI-related investments, particularly around Visakhapatnam. The state has been actively courting global technology companies and infrastructure providers as part of its broader digital growth strategy.
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Data Centres at the Centre of Andhra Pradesh’s Digital Infrastructure
The Andhra Pradesh government has introduced a series of policy measures to attract large data centre projects.
Earlier in the year, the state unveiled a framework granting Deemed Distribution Company (Discom) status to strategic data centres, allowing eligible facilities to manage their own power distribution systems and source electricity through multiple channels.
The policy is designed to support projects with significant energy requirements while encouraging the adoption of renewable energy.
The state’s ambitions gained momentum post announcements linked to Visakhapatnam, including large-scale data centre investments and AI infrastructure projects.
Officials have positioned these developments as contributors to a broader technology ecosystem, including connectivity, cloud services, semiconductor-related opportunities and digital infrastructure.
Also Read: Reliance Eyes Andhra Pradesh: Plans for Establishing a Mega AI Data Centre
Debate Continues Over Economic and Environmental Impact
The rapid expansion of data centre infrastructure has also sparked discussions about electricity consumption, water usage and long-term environmental sustainability.
Industry observers and community groups have raised questions about resource requirements and the direct employment generated by large facilities.
Lokesh argued that public discourse should take into account both the economic benefits and the sustainability measures being incorporated into modern data centre projects. He said the sector should be viewed as part of a broader digital infrastructure ecosystem that can support technology investments, innovation and future-ready industries.
States across India are competing to attract AI and cloud infrastructure investments. Andhra Pradesh is aiming to establish itself as a major hub for data centres, with Visakhapatnam emerging as a focal point of that strategy.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
