Andhra Pradesh Approves 512-MW Green AI Data Centre in Visakhapatnam

The Andhra Pradesh government has approved a proposal by AM AI Factory to build a 512-megawatt green integrated AI data centre at Amanam village near Visakhapatnam. The project carries an investment of over ₹31,387 crore.

The facility will combine high-density computing with renewable power generation and cooling systems designed for continuous AI workloads. Officials said it is expected to generate up to 1,000 direct jobs and additional indirect employment in construction and services.

Visakhapatnam has emerged as a preferred location for large digital infrastructure because of available land, port access and growing renewable energy capacity in the state. The green designation requires the operator to meet specific power-sourcing and water-use targets.

India's data-centre market has expanded rapidly with demand from cloud providers, AI training clusters and content delivery networks. States compete by offering land, power and policy support. Andhra Pradesh's clearance adds one of the larger single-site projects announced this year.

The company has not released a full construction timeline. Local clearances for land and environmental compliance are the next steps. State officials indicated that the project aligns with efforts to position the coastal region as a technology and logistics hub.

Similar facilities elsewhere in India have faced challenges around power reliability and water availability. The green design aims to address those constraints from the start. Whether the planned renewable supply materialises at the required scale will determine the project's long-term operating costs.

The approval forms part of a broader push by several states to attract AI-related capital. Investors continue to weigh power prices, latency to major markets and regulatory stability when choosing sites.