India has announced plans to build a massive artificial intelligence–focused “data city” in Visakhapatnam as part of its push to strengthen digital infrastructure and attract global investment. The project is intended to help narrow the AI gap with countries like the United States and China by creating a large, integrated digital ecosystem that supports AI research, data processing and storage, and related services. The initiative forms a cornerstone of India’s broader strategy to expand its role in the global technology landscape.
The “data city” concept goes beyond traditional data centres by incorporating advanced digital infrastructure capable of supporting hyperscale computing, big data analytics, and AI workloads. According to state officials leading the project, the goal is to draw both domestic and international firms to establish operations and innovation hubs in the region, boosting India’s competitiveness in next-generation technologies.
Officials say the project is already attracting significant investor interest, with reported commitments worth tens of billions of dollars for data centres and associated digital facilities. The state government is positioning Visakhapatnam as a strategic AI gateway, leveraging its coastal location, connectivity advantages and potential for undersea cable links to improve data transmission and global integration.
Beyond its technological ambitions, the AI data city is expected to have wide economic and social impacts. Leaders promoting the plan highlight its potential to generate jobs in high-skill sectors like data science and engineering, support digital literacy and education, and stimulate economic growth in and around the region. If successful, the project could significantly bolster India’s digital economy and secure the country’s standing as a major hub for AI development.
