Andhra Pradesh has more data centre demand than it can handle, says IT Minister Nara Lokesh

Andhra Pradesh is witnessing strong investor interest in data centre projects, but the demand is exceeding what it can accommodate, as per IT and Electronics Minister Nara Lokesh. The state is looking for alternative cooling technologies, including air-cooled data centres, as it plans to expand its AI infrastructure ecosystem.

Speaking to Business Today on the sidelines of the Partnership Summit, Lokesh said the state is gaining momentum when it comes to investments in artificial intelligence (AI) and data centres despite the evolving geopolitical situation.

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Andhra Pradesh considering types of data centre projects

When asked whether the geopolitical development had changed investor sentiment towards the state, Lokesh dismissed the claims, saying, “Absolutely not. In fact, investors are doubling down on India, because they see India as a very stable democracy.”  However, he stated a different challenge that may delay investment until a resolution is in place. 

“In data centres, actually, we have a different problem. There's more interest than what we can actually give,” Lokesh said. “We are being very cautious in our approach to data centres, as we are not just looking at water-cooled, we're also looking at air-cooled data centres. And that's the change that we are slowly making here in Andhra Pradesh,” he added. 

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The minister also stated that the state is more cautious about the kind of data centre projects it wants to attract, in terms of resource requirements for large facilities.

Andhra Pradesh AI infrastructure push

Over the months, the Andhra Pradesh government have pushed data centre development alongside AI and other emerging technologies. The state has been working to attract large technology companies and build an ecosystem around digital infrastructure.

Google is among the major companies that have invested in the state's data centre ambitions. The company has commenced its data centre project in Visakhapatnam, making it an emerging destination for large-scale digital infrastructure.

He attributed this interest to Andhra Pradesh's three-pronged approach of speed, stability and service.

“Andhra Pradesh, as I say, has the three S mantra: speed, stability, and service. Speed of doing business, stability in our policy frameworks, and third is service,” he said.

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The minister added that the state government maintains regular communication with investors and provides weekly updates on their projects.

“We are in touch with every investor. We are very proactive. We reach out to them. We send weekly updates on their investments in Andhra Pradesh,” he said.