Massive ₹15,000-crore data center propels Andhra Pradesh to AI leadership
This massive ₹15,000-crore data center fuels India's AI revolution, establishing Visakhapatnam as a critical Indo-Pacific compute coast.
November 13, 2025

Andhra Pradesh is cementing its position as a premier digital infrastructure hub in the Indo-Pacific region, securing a monumental ₹15,000-crore investment from Tillman Global Holdings.[1][2][3] The New York-based digital infrastructure player has signed a Memorandum of Understanding (MoU) with the state government to develop a 300-megawatt (MW) hyperscale data center campus in Visakhapatnam.[1][2][3] This landmark agreement, facilitated by the Andhra Pradesh Economic Development Board (APEDB), follows closely on the heels of Google's announcement of a massive AI hub in the same city, signaling a coordinated effort to transform the coastal metropolis into a critical node for data processing and artificial intelligence development in India.[1][2][4] The new facility, codenamed TDGAP1, will be developed on a 40-acre campus and is poised to significantly bolster India's digital backbone, catering to the exponential growth in data consumption and the intensive computational demands of the burgeoning AI industry.[1][5]
The project is expected to have a profound economic impact on the region, with projections indicating the creation of 200–300 direct and 800–1,000 indirect jobs by 2028.[1][3][6] These employment opportunities will span across a broad ecosystem of allied services, including logistics, cloud networking, and other ancillary units that will be catalyzed by the data center's presence.[6][5] The MoU establishes a clear framework for the project's execution over the next 12 months, with the APEDB tasked with coordinating investor facilitation and ensuring seamless inter-agency support.[1][3] Under the terms of the agreement, Tillman Global Holdings will be responsible for providing the investment, technology, planning, design, and critical equipment for the state-of-the-art campus. In return, the Andhra Pradesh government will facilitate land allotments, incentives, and other benefits in accordance with its prevailing policies and regulations.[1][7] This collaborative approach underscores the government's commitment to creating a business-friendly environment to attract high-value technology investments.
The selection of Visakhapatnam for this hyperscale data center is a strategic decision rooted in the city's unique geographical and infrastructural advantages. State officials have been vocal about their strategy to position Visakhapatnam as a premier data center hub, leveraging its coastal location which is ideal for submarine cable landings that provide high-speed international connectivity.[1][8] This eastern seaboard location offers crucial route diversity, complementing the existing digital gateways of Mumbai and Chennai on the west coast.[9] The state's proactive stance is further solidified by its Data Centre Policy 4.0, which is designed to attract global investors by offering a suite of competitive incentives.[10] These include significant power tariff subsidies, exemptions on electricity duties, and streamlined processes for land allotment and other regulatory clearances, creating a compelling proposition for capital-intensive projects like data centers.[10] The development of this digital infrastructure is a critical component of the state's vision to become a leading destination for technology and innovation.
The implications of this massive data center for India's artificial intelligence sector are immense. Hyperscale data centers, with their vast computational power and high-density rack configurations, are the engine rooms of the AI revolution.[1][6][11] They provide the necessary infrastructure to train large language models (LLMs) and power a wide array of AI-driven applications and cloud services.[1][11] The establishment of the 300 MW Tillman facility, in conjunction with Google's planned gigawatt-scale AI hub, creates an unparalleled ecosystem for AI development in Visakhapatnam.[1][12][13] This synergy will likely attract a host of AI startups, research institutions, and global technology firms to the region, fostering an environment of innovation and creating a highly skilled talent pool. The immense data processing capability will not only serve the Indian market but also position the "compute coast" of Visakhapatnam as a vital hub for data traffic and AI workloads across the Indo-Pacific.
In conclusion, the MoU between Andhra Pradesh and Tillman Global Holdings represents a watershed moment for India's digital ambitions. The ₹15,000-crore investment is more than just the construction of a physical facility; it is a strategic move that strengthens the nation's digital sovereignty, creates high-quality jobs, and lays a robust foundation for the future of artificial intelligence.[1][5] By leveraging its geographical advantages and enacting progressive, investor-friendly policies, Andhra Pradesh is successfully positioning Visakhapatnam as a globally competitive digital and AI hub.[1] This development, alongside other major technology investments in the city, will undoubtedly accelerate India's journey to becoming a leading player in the global digital economy, with Visakhapatnam at the very heart of this transformation.