Andhra Pradesh Secures $10 Billion to Build India's Premier AI Hub.
$10 Billion investment to build India's largest AI-ready 1 GW data center and create 100,000 jobs.
January 21, 2026

A monumental strategic investment has positioned the state of Andhra Pradesh as a burgeoning hub for next-generation digital infrastructure in India, with the RMZ Group proposing to deploy up to $10 billion over the next five to six years. The partnership, announced at the World Economic Forum Annual Meeting in Davos, centers on developing a massive Global Capability Centre (GCC) Park and a hyperscale data centre cluster, projects that are expressly designed to power Artificial Intelligence workloads and generate significant economic activity. This ambitious plan is projected to create nearly 100,000 jobs across the Information Technology, data center, industrial, and logistics sectors, fundamentally reshaping the region's digital economy landscape.
The centerpiece of this digital transformation is the planned hyperscale data centre cluster in the Visakhapatnam region. With a targeted capacity of up to 1 gigawatt (GW), this facility signifies a major leap in India's compute power and digital infrastructure capacity. For perspective, the entire installed data center capacity across India only recently crossed the 1 GW mark, making RMZ’s single proposed cluster an investment that could potentially match the current national capacity in a phased development[1][2]. This immense scale is not merely for general cloud computing; the project is explicitly designed to cater to "next-generation digital and AI workloads"[3][2][4]. AI, especially the training and deployment of large language models (LLMs) and Generative AI applications, requires unprecedented levels of High-Performance Computing (HPC) power and data storage. The 1 GW capacity, which is ten times larger than typical hyperscale operations, ensures the infrastructure can handle the intensive, sustained power and cooling demands of thousands of AI servers, attracting global hyperscalers, frontier AI labs, and national sovereign AI initiatives to the region[5][6]. Furthermore, the plan’s strong emphasis on "sustainability and green power integration" addresses a critical concern for energy-intensive AI infrastructure, aligning the project with global environmental standards and providing a competitive edge in attracting environmentally conscious technology giants[3][7][6].
The digital backbone provided by the gigawatt-scale data centre will be inextricably linked to the second major component: the Global Capability Centre Park. Located at the Kapuluppada Phase-1 IT Park in Visakhapatnam, the GCC facility is planned to encompass a potential built-up area of up to 10 million square feet over approximately 50 acres[3][7][1]. Global Capability Centres in India have rapidly evolved from traditional back-office operations to sophisticated innovation powerhouses, driving research and development, and influencing global strategy for multinational corporations[3]. This new GCC park is intended to attract global enterprises, serving as a hub where advanced digital services and IT R&D capabilities can be developed and housed directly adjacent to the high-capacity, low-latency AI compute resources of the data center[6][2]. This co-location of digital infrastructure and high-value technical talent is a strategic maneuver to accelerate the adoption and development of Artificial Intelligence and Machine Learning solutions. Across India, Global Capability Centres are rapidly integrating AI, with a significant majority already investing in Generative AI and establishing dedicated AI/ML Centers of Excellence[8][9]. The Visakhapatnam park is positioned to be a prime destination for firms seeking to leverage this trend, offering the physical and digital infrastructure needed for highly specialized roles in data science, cognitive automation, and AI auditing, thereby cementing its role as a key digital and AI hub[10][4].
Beyond the immediate digital ecosystem in Visakhapatnam, the comprehensive investment plan is designed to ensure balanced regional economic development across the state. The $10 billion investment extends to the Rayalaseema region, where RMZ Group plans to establish an Industrial and Logistics Park at Tekulodu over approximately 1,000 acres[6][2][4]. This component anchors industrial manufacturing, warehousing, and logistics activities, creating a strong industrial base and catalysing growth in a region that has traditionally lagged in high-tech investments[1]. This multifaceted approach underpins the projection of generating around one lakh (100,000) jobs[3][2][4]. The employment opportunities will span across the entire value chain, from high-skilled AI and cloud computing roles within the GCC and data center facilities, to positions in industrial manufacturing, warehousing operations, and supply chain logistics in the Rayalaseema park[2][11]. This massive job creation potential represents a significant boost to local human capital development, necessitating robust skill development and training programs to prepare the regional workforce for these specialized, future-ready roles.
This massive investment underscores a pivotal shift in India's digital strategy, moving beyond software service provision to building proprietary, high-density, and AI-ready hardware infrastructure. By hosting one of the nation's largest planned data centre clusters alongside a major Global Capability Centre Park, the RMZ Group and the Andhra Pradesh government are laying the physical foundation for a future where the state is not just a consumer of global technology, but a significant provider of next-generation AI and compute solutions. The scale and scope of the commitment solidify the state's vision to be a premier digital and technology-led growth hub, setting a new national benchmark for large-scale, integrated digital infrastructure development in the era of artificial intelligence.