• Andhra Pradesh doubles down on building a full-stack data center manufacturing ecosystem
  • “Andhra Pradesh is positioning itself as a global hub for next-generation manufacturing and digital infrastructure”, says Nara Lokesh

Mumbai: The Government of Andhra Pradesh will tomorrow mark a significant milestone in its industrial and digital infrastructure journey with the groundbreaking of Carrier’s advanced chiller manufacturing facility at Sri City.

This investment represents Andhra Pradesh’s strategic pivot from being a destination for data centers to becoming a global hub for manufacturing the critical components that power the digital economy.

Andhra Pradesh is rapidly emerging as one of India’s most significant data center destinations, anchored by large-scale global investments and a forward-looking policy framework. In recent weeks alone, a landmark $15 billion Google AI data center hub—one of the largest digital infrastructure investments in India—has broken ground in Visakhapatnam, with a planned 1 GW hyperscale capacity . This is complemented by proposals such as Reliance Industries’ ₹1.6 lakh crore 1.5 GW data center cluster, alongside multiple commitments from global and domestic players. With an overall pipeline estimated at over ₹6 lakh crore and a targeted capacity of ~6 GW, Andhra Pradesh is positioning itself well ahead of the current national capacity, building a scale that few regions globally can match . This momentum, backed by progressive policies such as dedicated power frameworks for data centers, is transforming the state – particularly Visakhapatnam – into a premier hub for AI, cloud, and digital infrastructure.

Carrier’s entry further strengthens this ecosystem – bringing advanced cooling technologies that are indispensable for next-generation data centers, AI infrastructure, and high-performance computing environments.

From Data Centers to a Full Manufacturing Ecosystem

Andhra Pradesh has already established itself as a leading destination for large-scale data center investments, with a rapidly growing pipeline of AI-native facilities. However, the state’s vision goes beyond hosting these assets.

The focus is now on building a complete value chain – from data center infrastructure to component manufacturing, including:

– Cooling and thermal management systems

– Power and energy management solutions

– Precision engineering components

– Electronics and control systems

By integrating manufacturing with digital infrastructure, Andhra Pradesh aims to create a self-sustaining ecosystem that reduces import dependency, boosts exports, and positions India as a global leader in data infrastructure manufacturing.

Sri City: The Nucleus of the Cooling & Manufacturing Cluster

Sri City’s evolution into a major HVAC and electronics hub makes it central to this strategy. With:

– ₹12,000 crore invested in cooling and AC manufacturing

– 25,000 direct jobs created in the segment

– A strong supplier base contributing ₹4,600 crore in investments

– Nearly 60% projected share in India’s AC production by 2027

the ecosystem is already demonstrating scale, depth, and global competitiveness.

Carrier’s facility will further catalyse supplier networks, innovation, and export-oriented manufacturing, reinforcing Sri City’s position as a critical node in the global supply chain.

Quote from Shri Nara Lokesh, Hon’ble Minister for IT, Electronics & Communications, and HRD

“Andhra Pradesh is not content with being just a host for data centers – we are determined to become the engine that powers them. The groundbreaking of Carrier’s facility at Sri City marks a defining moment in our journey to build a full-stack data infrastructure ecosystem – from energy and data centers to the manufacturing of the components that sustain them. With world-class industrial ecosystems like Sri City, strong policy support, and our unwavering focus on speed and scale, Andhra Pradesh is positioning itself as a global hub for next-generation manufacturing and digital infrastructure.”