Visakhapatnam emerges as India’s next mega AI hub as global players race to build data infrastructure.
Credits: Moneycontrol
A New AI Powerhouse in the Making
India’s data infrastructure story just received one of its biggest accelerations. A joint venture led by Reliance Industries is set to invest a massive $11 billion over the next five years to develop 1 gigawatt of AI-led data capacity in Andhra Pradesh. The consortium includes Canada’s Brookfield Corporation and U.S.-based Digital Realty—making the initiative a global collaboration with strategic domestic alignment.
The venture, named Digital Connexion, aims to build an “AI-native” data ecosystem—not just storage, but infrastructure optimised for high-performance computing, training models, inferencing workloads, and real-time AI deployment.
Visakhapatnam: India’s Next Silicon Coast
The project will be developed on 400 acres in Visakhapatnam, signalling the city’s rise as India’s new digital coastline. This comes at a time when Visakhapatnam is witnessing increased interest from Big Tech.
Just last month, Google announced plans to build its largest AI data hub outside the U.S.—also in Visakhapatnam, with a five-year execution timeline. Together, these moves are positioning the region as a future AI and digital infrastructure capital.
Government officials from Andhra Pradesh confirmed the project on Wednesday, calling it a defining moment for the state’s technology ecosystem and employment landscape.
The Global Rush to Build AI Infrastructure
The timing couldn’t be more strategic. The global explosion in AI models—from GPT-scale systems to domain-specific LLMs—has triggered unprecedented demand for compute power, storage, and mission-critical digital infrastructure.
AI is no longer just a software capability—it is an infrastructure war, and data centres are the battleground.
According to recent projections, India’s current data centre capacity is expected to more than triple to 4.5 gigawatt by 2030, as per Colliers. The new Reliance-led project alone accounts for almost a quarter of that capacity trajectory, highlighting the scale and confidence behind it.
Not Just Capacity — But Capability
Digital Connexion is expected to go beyond traditional hyperscale facilities. The ambition is to build a next-gen AI campus, enabling:
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GPU-rich cloud clusters
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Green and renewable energy-powered compute
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High-bandwidth connectivity and edge AI support
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Sovereign digital infrastructure for AI research, industry, and government
Brookfield brings large-scale infrastructure investment experience, while Digital Realty is among the world’s largest operators of cloud-first and hyperscale data campuses. Reliance’s role helps secure local infrastructure, connectivity via Jio’s fibre network, and sovereign digital access for enterprise and government workloads.
The Competitive Momentum Builds
This announcement comes on the heels of another major move in India’s AI infrastructure race. Last week, IT giant TCS unveiled a partnership with private equity major TPG, with $2 billion earmarked to build AI-focused data centres through a new joint venture.
With private corporations, global investors, and hyperscalers entering the sector simultaneously, India is now firmly embedded in the global AI infrastructure race—and is evolving from a tech service export hub to a foundational AI-infrastructure nation.
A Defining Decade for India’s AI Ambition
The next five years will determine how competitive India becomes in the global AI economy. With infrastructure emerging as the new competitive advantage, the Reliance-led $11-billion commitment is not just a tech project—it’s a signal of a national shift.
Credits: Mint
Conclusion
As India accelerates its push into the global AI ecosystem, the Reliance–Brookfield–Digital Realty investment marks more than just another infrastructure project—it represents a shift toward technological self-reliance and high-value innovation. With Visakhapatnam rapidly emerging as a new AI corridor and multiple industry giants stepping in with massive capital commitments, the country is positioning itself not just as a participant, but as a future leader in the global AI economy.
