Andhra Pradesh is preparing to build a state-of-the-art Data City near Visakhapatnam, featuring data centres and AI hubs, as reported by The Economic Times. This project is part of the state government's commitment, in line with the Telugu Desam Party's election promise, to generate 2 million jobs within the next five years. The Data City, located in Madhurawada, aims to replicate the success of Hyderabad's Hitec City.

Spanning 500 acres, the Data City will become a central hub for IT companies, offering a wide range of technological solutions. The government has already started acquiring land for the project, with plans to dedicate 80 acres to Google for a data centre, following a Memorandum of Understanding (MoU) between the tech giant and the Andhra Pradesh government. However, specific details of the agreement are yet to be revealed. Additionally, Tata Consultancy Services (TCS) will secure 30 acres for its expansion in the area.

The idea for the Data City is mainly attributed to Nara Lokesh, Andhra Pradesh's IT minister and the son of Chief Minister N Chandrababu Naidu, who also played a key role in developing Hyderabad's Hitec City.

While attending the World Economic Forum (WEF) in Davos, Lokesh discussed the establishment of data centres and parks in Visakhapatnam with Temasek Holdings. He also met with Ravi Kumar, CEO of Cognizant, to explore possibilities for this ambitious project.

Lokesh shared with The Economic Times, “At Davos, we have seen tremendous interest from IT companies, data centres, AI and deep tech firms to enter Andhra Pradesh. We are now consolidating all these opportunities to locate them near Vizag. This will emerge as the hub for tech firms in India.”

To replicate the success of Hyderabad’s Hitec City, the Andhra Pradesh government intends to attract a major company to serve as the cornerstone for the project, much like Microsoft did in Hyderabad. Google is widely speculated to play a similar role in Data City.

Once significant companies are secured, the state government plans to further develop the area by introducing tourist attractions to enhance the region’s appeal. As the state faces financial challenges, the Andhra Pradesh government is focused on driving investments to bolster its economy and fulfill its "Super Six" election promises.

Since the division of the state, which resulted in Telangana taking Hyderabad, the key revenue-generating city, Andhra Pradesh has concentrated on decentralising development. Recently, the state revealed plans to introduce a "demographic management" policy to tackle the challenges posed by a declining workforce, an ageing population, and changing family structures.

Andhra Pradesh is undergoing significant demographic shifts, as Governor S Abdul Nazeer highlighted in his Republic Day address. The state is experiencing a sharp decline in its Total Fertility Rate, an ageing population, and changes in traditional family structures. To address these changes, the government plans to invest in healthcare infrastructure, develop inclusive social security schemes, and support community-based welfare initiatives.

Meanwhile, Andhra Pradesh is also vying to become a leading data centre hub alongside Telangana and Maharashtra. The state aims to attract international players by bolstering its digital infrastructure and unveiling ambitious plans to support the growth of data centres.