Blackstone-backed AirTrunk plans ₹1.03 lakh crore investment in Andhra Pradesh for two data centre campuses

Blackstone-backed data centre operator AirTrunk has proposed an investment of approximately ₹1.03 lakh crore ($11 billion) to develop two hyperscale data centre campuses in Andhra Pradesh, marking one of the largest planned digital infrastructure investments in India.

The company has submitted a detailed project report to the Andhra Pradesh government for the proposed facilities, which would have a combined capacity of up to 1.8 gigawatts (GW), according to an emailed statement from AirTrunk.

The proposal is currently under consideration by state authorities, and the investment remains subject to the necessary approvals.

Andhra Pradesh's growing data centre ambitions

The proposed development comes as Andhra Pradesh intensifies efforts to position itself as a major destination for hyperscale data centres and artificial intelligence infrastructure.

The state is attracting significant interest from global technology companies and infrastructure investors seeking to expand computing capacity amid growing demand for cloud services and AI applications.

Alphabet-owned Google is separately developing a $15 billion artificial intelligence hub in Andhra Pradesh, further strengthening the state's position in India's emerging digital infrastructure landscape.

If approved, AirTrunk's investment could substantially expand the state's data centre capacity while creating opportunities across construction, power infrastructure, equipment manufacturing and associated services.

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Power and water requirements in focus

However, the rapid expansion of hyperscale data centres has raised concerns about the substantial electricity and water resources required to operate these facilities.

Andhra Pradesh Chief Minister N. Chandrababu Naidu said this week that the state government was expanding renewable energy capacity and strengthening water supply infrastructure to support large-scale data centre developments.

AirTrunk said its proposed campuses would incorporate low-water, air-cooled technology designed to reduce water consumption.

The company also plans to use industrial water supplies rather than municipal sources, potentially limiting pressure on water resources used by households.

The proposed facilities would add to India's expanding pipeline of hyperscale data centre projects as global operators seek infrastructure capable of supporting increasingly demanding AI and cloud computing workloads.

However, the project's eventual scale and investment will depend on regulatory clearances, infrastructure readiness and the company's final development plans.

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