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Keen on data centres, Andhra aims for 6GW as $10-billion Google deal puts Vizag on global tech map
Andhra Pradesh plans to significantly scale up its data center hosting capacity to 6 GW within three years, building on a $10 billion deal with Google for a 1GW facility in Vizag. The state aims to mirror Hyderabad's IT hub success in a shorter timeframe, focusing on comprehensive development of the Greater Vishakha Economic Corridor and embracing AI's growth.
Ahead of signing a $10-billion deal with Google for setting up a 1GW data centre cluster in Vizag, Andhra Pradesh IT and electronics minister Nara Lokesh told ET the state will double down on such projects and scale up hosting capacity to 6 GW over the next three years.
Apart from the 1GW deal with Google, the state has one for 500 MW with Sify. The Andhra Pradesh government is in the process of talking to four other companies to achieve its target. ET was first to report, on October 8, that Andhra Pradesh had clinched the $10 billion investment by Google.
He brushed aside criticism of data centres as being power and water guzzlers.
“Our estimates are that 1 GW of data centre capacity means creation of 200,000 direct and indirect jobs,” said Lokesh, son of Andhra Pradesh chief minister N Chandrababu Naidu. “Let's face it–AI is here to stay. Either you embrace it or you get replaced by it. We as a state have decided to embrace it.”
The minister said the state government is approaching the expected surge in power and water demand in a “systematic manner” and will seek to mirror Hyderabad's achievement in a shorter time frame.
“Vizag is a part of what we are calling the Greater Vishakha Economic Corridor,” he said. “It goes all the way up to Srikakulam in the north and down to Anakapalli in the south.”
“We are going about it in a very systematic manner,” he explained. “There will be an IAS officer in charge because it cuts across several districts. From social ecosystem to surface transportation to aviation to power and water demand, we are planning it very comprehensively. What took Hyderabad 30 years, we are going to do in 10 in Vizag.”
The capital of undivided Andhra Pradesh, Hyderabad is now part of neighbouring Telangana. Naidu is credited with having turned the city into an IT hub.
Lokesh said Vizag will be Andhra Pradesh's economic capital.
“Vizag will be home to IT, pharma, steel city, a medical devices park and more,” he said. “Vizag is going to be our economic capital.
Before announcing Amaravati as the capital of Andhra, Mr Naidu had declared Vizag will be the economic capital of Andhra. We remain committed to that vision. Vizag is going to be one of many Hyderabads we are going to build.”
Andhra Pradesh will formalise the deal with Google in New Delhi on Tuesday. Before winning the investment, Andhra Pradesh had to lobby with the Centre to address issues raised by the US tech giant.
“There was the issue of lawful interception — suppose there is data of a country which comes to Indian soil for processing and has nothing to do with India, then the Indian Penal Code cannot apply to that,” he said.
“Then there was the definition of ‘permanent establishment,' and taxation and copyright issues. We still have the hangover of retrospective taxation. These were the questions they wanted answered. The finance minister and electronics minister Ashwini Vaishnaw worked with the state government and we found solutions.” Andhra Pradesh has been pushing hard to attract investments.
“This is what sets us apart from competition,” Lokesh said. “This time, what is different is the pace at which we can ground. Once an MoU is signed, we say to the investor that it is no longer your project, it is our project.
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Source: EconomicTimes
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