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Blackstone-backed data centre operator AirTrunk has submitted detailed plans for two hyperscale data centre campuses in Andhra Pradesh, involving a proposed investment of approximately ₹1.03 lakh crore ($11 billion), as global technology infrastructure companies expand their presence in India.
The proposed facilities, located in Anakapalli district near Visakhapatnam, would have a combined capacity of up to 1.8 gigawatts. AirTrunk has signed a memorandum of understanding with the Andhra Pradesh government, while its detailed project report remains under consideration by state authorities.
The development represents a significant step in AirTrunk’s broader Indian expansion strategy and strengthens Andhra Pradesh’s efforts to become a major destination for artificial intelligence and cloud computing infrastructure.
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AirTrunk Plans Two Large Data Centre Campuses Near Visakhapatnam
The proposed development comprises a 400-megawatt campus at Rambilli and a much larger 1.4-gigawatt facility at Tootipala, both in Anakapalli district.
The combined capacity would place the proposed development among India’s largest digital infrastructure projects.
Hyperscale data centres are large facilities designed to support extensive computing, storage and networking operations. They provide the infrastructure required by cloud service providers, artificial intelligence developers and other businesses processing enormous volumes of information.
Unlike conventional data centres serving smaller organisations, hyperscale facilities can accommodate thousands of servers and expand their capacity as demand increases.
AirTrunk’s decision to develop two campuses reflects growing demand for infrastructure capable of supporting advanced AI applications and large-scale cloud services.
Carly Wishart, AirTrunk’s Managing Director for Corporate and International, said the company looked forward to working with government and community partners as the proposal progressed.
However, the submission of a detailed project report and signing of a memorandum do not mean construction has begun. The projects remain subject to regulatory approvals, infrastructure arrangements and subsequent investment decisions.
Andhra Pradesh Emerges As A Major AI Infrastructure Destination
AirTrunk’s proposal follows another substantial technology investment in Andhra Pradesh.
In October 2025, Google announced plans to invest approximately $15 billion between 2026 and 2030 to establish its first Indian AI hub in Visakhapatnam.
The project includes gigawatt-scale computing infrastructure, expanded fibre-optic connectivity, clean energy facilities and an international subsea cable gateway. Google is developing the infrastructure in partnership with AdaniConneX and Bharti Airtel.
The company broke ground on the project in April 2026, marking the beginning of its construction phase.
AirTrunk’s proposed campuses would add another major infrastructure development to the region, although the projects are separate from Google’s investment.
For Andhra Pradesh, the expansion provides an opportunity to attract technology companies, create demand for specialised engineering services and strengthen its position in India’s digital economy.
Visakhapatnam’s coastal location also offers potential advantages for international telecommunications connectivity, particularly through subsea cables connecting India with overseas markets.
The eventual economic benefits, however, will depend on how these projects are implemented, the employment opportunities they generate and their integration with local businesses.
Electricity And Water Requirements Remain Major Challenges
The rapid expansion of data centres has raised concerns about their consumption of electricity and water.
Large computing facilities require continuous power to operate servers, networking equipment and cooling systems. AI applications can place particularly heavy demands on infrastructure because advanced processors consume substantial amounts of electricity.
At a combined proposed capacity of 1.8 gigawatts, AirTrunk’s campuses would require extensive supporting infrastructure.
Andhra Pradesh Chief Minister N Chandrababu Naidu has said the state is expanding renewable energy capacity and strengthening water supplies to support large data centre developments.
AirTrunk has indicated that its proposed campuses would use air-cooled technology designed to minimise water consumption. The company also plans to rely on industrial water supplies rather than municipal sources.
These measures could help reduce pressure on water resources used by households. However, air cooling does not eliminate electricity consumption, and the overall environmental impact will depend on the facilities’ final designs and operating conditions.
Detailed arrangements concerning electricity procurement, renewable energy integration and water consumption have not yet been publicly disclosed.
AirTrunk Expands Its $30 Billion India Investment Strategy
The Andhra Pradesh proposal follows AirTrunk’s announcement in June that it plans to invest approximately $30 billion in India by 2030, supporting the development of around five gigawatts of additional data centre capacity.
The company entered India in April through its acquisition of Lumina CloudInfra, an established developer of large-scale computing facilities.
That acquisition gave AirTrunk access to approximately 600 megawatts of planned capacity across Mumbai, Chennai and Hyderabad, representing up to $5 billion in potential future development.
AirTrunk is supported by investment capital from Blackstone and the Canada Pension Plan Investment Board, reflecting growing institutional interest in digital infrastructure.
The company’s expansion comes as India experiences increasing demand for cloud computing, AI applications and digital services. Businesses require reliable computing infrastructure to operate financial platforms, e-commerce services, enterprise software and advanced AI systems.
Greater domestic data centre capacity could also help organisations meet certain data storage and security requirements, although physical proximity alone does not guarantee cybersecurity or regulatory compliance.
For AirTrunk, the immediate priority is advancing its Andhra Pradesh proposals through the approval process. The company has not disclosed a construction timetable or confirmed when the two campuses could begin commercial operations.
What This Means For You:
India’s expanding data centre industry could create opportunities in cloud computing, cybersecurity, electrical engineering and infrastructure management. Businesses evaluating new cloud providers should assess their security standards, data protection practices and service reliability rather than capacity alone.
