India's Visakhapatnam 'Data City' AI Push
Analysis based on 7 articles · First reported Feb 15, 2026 · Last updated Feb 15, 2026
The ambitious 'data city' project in India — Visakhapatnam, backed by significant investments from Alphabet Inc., Reliance Industries, Brookfield Asset Management, Digital Realty, and Microsoft, is expected to drive substantial growth in India's technology and data center industries. This initiative positions India as a major player in the global AI landscape, attracting further foreign direct investment and potentially creating new job opportunities, positively impacting the market sentiment for technology-related stocks and the overall Indian economy.
India is planning a vast new 'data city' in India — Visakhapatnam, India — Andhra Pradesh, to accelerate its artificial intelligence capabilities and bridge the gap with the United States and China. Spearheaded by India — Andhra Pradesh IT minister Nara Lokesh, the project has secured $175 billion in investment agreements. Key investments include $15 billion from Alphabet Inc. for its largest AI infrastructure hub outside the United States, and an $11 billion joint venture by Reliance Industries, Brookfield Asset Management, and Digital Realty for an AI data center. Microsoft is also investing $17.5 billion in India's AI infrastructure. The 'data city' will cover a 100-kilometer radius, with India — Andhra Pradesh offering land at a nominal cost to attract investors. The initiative aims to create jobs and economic benefits, with plans to address electricity and water demands by utilizing surplus water. India, currently ranked third globally in AI power by Stanford University, seeks to become a creator rather than just a consumer of cutting-edge AI technology.
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